I like: Dave Finocchio, CEO of Bleacher Report on media and sports business

Great points on Facebook through to sports team owners

No surprises on what is said about Facebook. The fickleness of millennials with regards sports is interesting, it did make me wonder if this also plays through for supporters of English Premier League teams.

Fantasy sports leagues aren’t engaging as it had been for older generations. Younger people struggle to get 12 of their friends on board to participate with them.

E-sports has a really small overlap with existing sports fans. E-sports players burn out too fast. It needs to address this to blow up as big as mainstream sports.

Technology is way ahead of interface designs

This post has taken a while to write. When I started we were on the cusp of Apple’s Worldwide Developer Conference. If you’re interested in technology, but aren’t an Apple fan it still matters as it sets the agenda. Apple’s moves affect wearables, smartphones, tablets and OTT (over the top) TV services.
 
The New York Times published an interesting article Apple Piles On the Apps, and Users Say, ‘Enough!’.
 
Ignore the title of the article itself, which is a function of clickbait rather than content. Instead, it provides an good critique of interface design across platforms. It highlights:
  • The difficulty in finding and installing other apps inside Messages. Many users aren’t aware of the functionality. This is different to the ‘interface as oldster barrier’ that SnapChat had. DoorDash – a Deliveroo analogue dropped a support after a few months due to a lack of users. Apple took a second run at this with iOS 11 trying to improve discoverability
  • Apple 3D touch isn’t used to drive contextual features by app developers
  • The Apple Watch’s mix of crown, button and small touch screen made ‘lean in’ interactive apps hard. The Apple Watch interface isn’t learned by ‘playing’ in the same way that you can with a Mac or an iPhone. Apple’s forthcoming watchOS update looks to have Siri ‘guess’ what you want. It wants to provide contextual information to users (and reduce interactions)
If you ignore 3D touch for a moment, these problems are cross platform in nature. (Some vendors like Huawei have attempted a similar 3D touch feature in their own apps. They did not try to get developer adoption.)
 
Thinking about Messenger app developers struggle to integrate disparate features into the interface. The exceptions are:
  • LINE
  • WeChat – the take up of mini-apps in WeChat have been disappointing performers. Is this indicating a possible ceiling for functionality?
Wearables as a category looks thin, with Apple being one of the largest players. Pebble got acquired by Fitbit. Jawbone seems to be a dead company walking. Their blog was last updated in October 2016, Twitter in February. It’s ironic: their original BlueTooth headset business would now be a great opportunity.
 
I’ve tried Casio’s BlueTooth enabled G-Shock, four Nike Fuelbands and a Polar wearable. I am on my second Apple Watch and I still don’t know what the real compelling use case is for these devices.
 
So how does this stuff come about? I think its down to the process of creation, which affects analysis and critical analysis of the product. Creation in this case is essentially throwing stuff up against the wall until it sticks and then the process becomes reductive. As a case in point, look how smartphones have evolved to the slab form factor. 
 
Throwing stuff against the wall
 
I’ve worked enough times on digital products to understand the functionality is king. It’s the single most important thing. I’ve worked on products that wonderful functions but:
  • Consumers didn’t know they had a need, its hard to get consumers to build new habits. Forming habits can be hard
  • They were a bitch to sign up with. Yahoo!’s sign-up process killed products. It’s a fact. We’d get consumers hyped up, we’d deliver them to the relevant page and they wouldn’t convert. I didn’t blame them, if I wasn’t an employee or digital marketer I’d have done the same
That’s how products are now built. The focus is on speed of execution of the idea. It isn’t about thinking through the complete experience. Agile methodologies with their short sprints puts emphasis on function. Away from data to feed into big picture optimisation. A function focus means that you end up with ‘lean in’ interaction designs as default.
 
There aren’t many organisations that get it right. I’d argue that the early Flickr team and Slack ‘got it’. Though there are common factors:
  • Both Flickr and Slack had common key team members
  • Both products fell out of failure. Flickr came out of tools for Game Neverending. Slack began as a tool in the development of Glitch
Where are the ergonomists and futurists?
 
There are people who can provide the rigorous critique.
Back in the day organisations with large R&D functions like NASA and BT employed writers to envisage the future. Staring into the future became a career. People like Syd Mead provided a visual map of the future. Mead and others did a lot of work thinking about the context of technology to users. At the present time lots of criticism levelled at VR glasses is it being anti-social. This comes as no surprise to anyone who has read William Gibson’s Neuromancer. Social interaction is more likely to come glasses wearer to glasses wearer. It will happen in a virtual third space. Neal Stephenson explored this third space in Snow Crash. The Black Sun was a virtual night club.
 

Bill Moggridge, designer of the GRiD Compass computer – the world’s first laptop thought a lot about ergonomics. The laptop had a 11 degree slope from pop-out leg to the keypad. This is something that your MacBook Pro or Surface doesn’t have. There is a lack of depth in technology design compared to what Moggridge had. He brought in psychologists and studied human computer interaction. He eventually co-founded IDEO.

Whilst the elements that Moggridge looked at were well known the thinking doesn’t seep into product categories. We are very good at asking can a product be made. We are poor at asking what does the product really mean. Apple’s viewpoint on the tablet segment is a case in point.

The vast majority of tablets are used for lean back media consumption from watching films and reading books to reviewing emails. It can work as a productivity device in specific circumstances with custom built apps – say field sales or replacing a pilot’s flight paperwork. The keyboard and power of modern Macs (and PCs) provide a better tool for content creators; whether its analysing a spreadsheet or writing this blog post. 

Yet, since its launch by Steve Jobs, Apple has viewed the iPad as a new PC. The iPad Pro has been designed to try and catch up in features with the Mac. It is ironic that Microsoft has moved a slim ‘MacBook clamshell design’ analogue into its latest Surface range.  It is very different to the pragmatic design ethos of China’s ‘shanzhai’ gadget markers who came up with both laughable and smart solutions. Everything from the dual SIM phone to the phone / electric razor hybrid. Successes bloomed and oddities slipped into the night.

Oprah time: True Names by Vernor Vinge

New York Times journalist John Markoff was interviewed by Kara Swisher on the Recode podcast in February and talked about reading science fiction to better understand how technology is likely to affect us.
Untitled
It’s actually a great piece of advice. Back in the day, large corporates used to employ authors to write stories based on scenarios as part of their research programmes. Many people have attributed the clamshell mobile phone to the Star Trek TV series and the flip communicator devices.

Markoff outlined his favourite stories.

“Snow Crash” by Neal Stephenson (1992): “The premise is, America only does two things well. One is write software, and the other is deliver pizzas. [laughs] What’s changed?”
“The Shockwave Rider” by John Brunner (1975): Markoff said he built his career on an early understanding that the internet would change everything. He said, “[The Shockwave Rider] argued for that kind of impact on society, that networks transformed everything.”
“True Names” by Vernor Vinge (1981): “The basic premise of that was, you had to basically hide your true name at all costs. It was an insight into the world we’re living in today … We have to figure it out. I think we have to go to pseudonymity or something. You’re gonna participate in this networked existence, you have to be connected to meatspace in some way.”
“Neuromancer” by William Gibson (1984): Markoff is concerned about the growing gap between elders who need care and the number of caregivers in the world. And he thinks efforts to extend life are “realistically possible,” pointing to Gibson’s “300-year-old billionaires in orbit around the Earth.

I had read Snow Crash relatively recently and Neuromancer was revisited last year. I had a vague recollection of The Shockwave Rider and True Names, but hadn’t read them in over 20 years.

Vinge’s True Names is published by Penguin with a collection of essays from a range of technology thinkers including

  • Chip Morningstar and Randy Farmer who founded Habitat one of the first massive online multiplayer games, back when dial up bulletin boards were the bleeding edge. Farmer worked at Yahoo! when I was there and was involved in Yahoo! 360 and still consults on community / social platform issues
  • Bruce Schneier wrote about how security products fail us. Bruce is one of the world’s leading commentators on all things hack and cryptography related
  • Mark Pesce is better known now as an Australian-based computer academic, but two decades ago he invented VRML – a way of representing the internet as a 3D thing and prescient in the light of Oculus Rift and others.
  • Marvin Minsky; was a pioneer in AI and machine learning provided an afterward to the story

That True Names managed to attract essays from these people should be an endorsement in itself.  Re-reading it two decades on, Vinge’s story echoes and riffs on the modern web. Hacking, cyberterrorism, constant government surveillance and the tension between libertarian netizens versus the regulated  real world. The central theme of Mr Slippy; a hacker who is identified by US government officials and co-opted as an unwilling informant and agent provocateur feels reminiscent of LULZSec leader and super grass Sabu. It’s amazing that Vinge wrote this in 1981 – although he envisages the web as being rather like a Second Life / Minecraft metaverse – with NeuroSky style interfaces.

Penguin’s careful curation of essays riffing on the themes of True Names is where the real value is in my opinion. For someone who cares about technology and consumer behaviour. It is worthwhile keeping this book on the shelf and diving in now and again.

More information
Want to understand the future? Read science fiction, John Markoff says. | Recode
Habitat Chronicles – thoughts on gaming, online products and community building by Chip Morningstar and Randy Farmer
Schneier on Security
Mark Pesce’s professional website and his columns for The Register
Vernor Vinge lecture on long-term scenarios for the future via The Wayback Machine

Jargon watch: black technology (黑科技)

An all-compassing phrase that I’ve heard being used by Chinese friends Hēi kējì in Pinyin or black technology. It’s been around for a couple of years but recently gained more currency among people that I know.

Microsoft Hololens 💥

It is used as a catchall for disruptive / cool innovative products. What constitutes ‘black technology’ is subjective in nature but generally Chinese would agree on some examples such as:

  • Magic Leap
  • Microsoft Holo Lens
  • Bleeding edge silicon chips with an extraordinary amount of memory or machine learning functionality built in
  • Tesla self-driving cars

The key aspect is that the product as ‘magical quality’ in the eyes of the user. Technology companies have tried to use it in marketing to describe the latest smartphone and app features like NFC, gesture sensitive cameras and video filters. Your average Chinese consumer would see this as cynical marketing hype. Xiaomi had been guilty of this over the past couple of years.

As technology develops, the bar for what represents black technology will be raised higher.

According to Baidu Baike (a Quora-like Q&A service / Wikipedia analogue) it is derived from the Japanese manga Full Metal Panic! (フルメタル·パニック! |Furumetaru Panikku!).

In the manga black technology is technology far more advanced than the real world. An example of this would be ‘Electronic Conceal System’ – active optical camouflage used on military helicopters and planes in the manga. It is created by the ‘Whispered’ – people who are extremely gifted polymaths who each specialise in a particular black technology.

In the manga they are frequently abducted and have their abilities tested by ‘bad organisations’ who support terrorism. Whispered also have a telepathic ability to communicate with each other. If they stay connected for too long there can be a risk of their personalities coalescing together.

More information
黑科技 (动漫中出现的词语)- Baidu Baike
Full Metal Panic – Amazon

Bill Gates on Richard Feynman

Two and half minute video on Richard Feynman by Bill Gates – worth the time.

I’ve been a bit quiet

I’ve been a bit quiet due to work and life intervening.  Alongside my work in looking at strategy through a data-centric lens I have also taken on a content strategy role on a project.  This isn’t about:

  • Coming up with a few social ideas
  • Editorial direction

But a much wider approach that takes a systems approach to content. What it is, where should it be and how it should be refreshed. With this in in mind I can thoroughly recommend The Content Strategy Toolkit: Methods, Guidelines, and Templates for Getting Content Right by Meghan Casey.

Meghan also provides a set of downloadable template to make your life even easier. I found the book relatively easy to digest but still have it about as a reference book on my current project.

I can also recommend the current British Museum exhibition: The American Dream – pop to the present. I really liked the works from the NASA art programme by Robert Rauschenberg that celebrated the Apollo programme.

Jump Around – 25 years later

It’s hard to believe that the House of Pain’s Jump Around turned 25 last week. The iconic intro from ‘Harlem Shuffle’ used to be a call to the dance floor when I used to play it on Wednesday night sets at a late closing wine bar in the North West of England.

The video fired my love of American workwear, previously I’d only really seen this worn on African-American  artists. I loved the form follows function, timeless style and burly nature of the garments. I hunted down supplies of Carhartt and Dickies in Leeds and Covent Garden – it’s kept me warm and dry ever since.

More importantly it was emblematic of an Irish blue collar swagger that the UK Irish community just didn’t have. The closest thing we had was the shambolic Pogues or wit of Dave Allen which he welded like a katana in the hands of a samurai. We were much more heads down as the troubles in Northern Ireland and sectarianism impacted our lives.

This was a spectacularly mean-spirited time; where the government used the police to beat the miner’s strike into submission and wilfully demolished the weak industrial base to build the financial services sector. Acid house and rave were created partly because the youth wanted to escape through hedonism.

The post Good Friday Irish experience of Irish emigrants just a few years later was rather different. Britain was on its way to Cool Britannia liberalism – when being in an Irish pub, no longer meant keeping an eye out for Special Branch agent provocateurs or well-known grasses.

Oprah Time: The World as Design: Writings of Design by Otl Aicher

Aicher was a German designer most famous of his graphic design and typography. His most famous font is Rotis  His impact was far wider. Aicher was a co-founder of the short-lived Ulm School of Design. Over its 15 years it developed a legacy that continues to echo through design education.

He worked with prominent German brands including Braun, Lufthansa and ERCO the lighting firm.

Aicher’s design language for the Munich Olympics was ground breaking. He designed the first Olympic mascot: Waldi a dachshund with multicoloured bands on his body. The posters for the Munich Olympics were hyper coloured designs that still had a system wrapped around them and now trade for hundreds of pounds.

You can blame him for single handedly kicking off the use of stickmen pictograms on public signage in buildings like airports.

Aicher and his colleagues at Ulm were about more than making things look pretty on their medium of choice, they thought about systems. Aicher’s holistic approach to systems influenced modern brand design.  Mark Holt, a co-founder of 8vo; who worked on everything from Factory Records to billing systems for mobile carrier Orange cited Aicher as a major influence.

otl aicher

Aicher’s book The World of Design collects a series of his essays across a wide spectrum of topics. Culture and political essays sit alongside examinations on the process of design and typography. Design and art do not exist in isolation but as part of the wider world. Something that you become keenly aware of as being central to his thinking – alongside his advocacy of reinvigorating modernism.

Probably most striking is Aicher’s delivery and style of writing. He writes with absolute confidence as each item has been thought about, despite feeling like a stream of consciousness in the way those mulled over thoughts are put down. He also completely dispenses with capital letters, sentences flow into each other from a visual perspective. This gives his work a sense of urgency and authenticity – but doesn’t make it any easier to read.

Theses essays felt as if they were born on the internet not written sometime before Aicher died in 1991, which says a lot about how fresh and contemporary his work still is.

 

I like: Carl Cox final mix on Global Radio

For the best part of two decades Carl Cox has been syndicated to a number of radio stations around the world. He is hanging up his radio shoes and put together a mix covering some three decades of house music. Its a great two-hour long mix.

Have we reached peak streetwear?

At the end of January I wrote a blog post about the landmark collection by Louis Vuitton and Supreme.

I delved into the history of streetwear and the deep connection it shared with luxury brands. This linkage came from counterfeit products, brand and design language appropriation.

This all came from a place of individuality and self expression of the wearer.

obey

I reposted it from my blog on to LinkedIn. I got a comment from a friend of mine which percolated some of the ideas I’d been thinking about. The comment crystalised some of my fears as a long-time streetwear aficionado.

This is from Andy Jephson who works as a director for consumer brand agency Exposure:

The roots of street and lux that you point to seem to be all about individuality and self expression and for me this is what many modern collabs are missing. To me they seem to be about ostentatious showmanship. I love a collaboration that sees partners sharing their expertise and craft to create something original. The current obsession with creating hype however is creating a badging culture that produces products that could have been made in one of the knock-off factories that you mention. Some collabs that just produce new colourways and hybrid styles can be amazing, reflecting the interests of their audience. But far too many seem gratuitous and are completely unobtainable for the brand fans on one side of the collaborative partnership.

The streetwear business is mad money

From Stüssy in 1980, streetwear has grown into a multi-billion dollar global industry. Streetwear sales are worth more than 75 billion dollars per year.

By comparison the UK government spent about 44.1 billion on defence in 2016. Streetwear sales are more than three times the estimated market value of Snap Inc. Snap Inc., is the owner of Snapchat.

Rise of Streetwear

It is still about one third the size of the luxury industry. Streetwear accounts for the majority of menswear stocked in luxury department stores. Harvey Nichols claimed that 63% of the their contemporary menswear was streetwear. Many luxury brands off-the-peg men’s items blur the boundary between luxe and streetwear.

The industry has spawned some technology start-ups acting as niche secondary markets including:

  • Kixify
  • K’LEKT
  • THRONE
  • StockX
  • SneakerDon
  • GOAT

Large parts of the streetwear industry has become lazy and mercenary. You can see this in:

  • The attention to detail and quality of product isn’t what it used to be. I have vintage Stüssy pieces that are very well-made. I can’t say the same of many newer streetwear brands
  • Colour-ways just for the sake of it. I think Nike’s Jordan brand is a key offender. Because it has continually expands numbers of derivative designs and combinations. New Balance* have lost much of their mojo. Especially when you look at the product their Super Team 33 in Maine came up with over the years. The fish, fanzine or the element packs were both strong creative offerings. By comparison recent collections felt weak
  • The trivial nature of some of the collaborations. This week Supreme sold branded Metro Cards for the New York subway
  • Streetwear brands that sold out to fast moving consumer products. This diluted their own brand values. While working in Hong Kong, I did a Neighborhood Coke Zero collaboration. The idea which had some tie-in to local cycling culture and nightscape. Aape – the second-brand of BAPE did a deal wrapping Pepsi cans in the iconic camouflage

Hong Kong brand Chocoolate did three questionable collaborations over the past 18 months:

  • Vitaminwater
  • Nissin (instant noodles)
  • Dreyer’s (ice cream)

By comparison, Stüssy has a reputation in the industry for careful business management. The idea was to never become too big, too fast. The Sinatra family kept up quality and selective distribution seeing off Mossimo, FUBU and Triple Five Soul. Yes, they’ve done collaborations, but they were canny compared to newer brands:

“The business has grown in a crazy way the past couple of years,” says Sinatra. “We reluctantly did over $50 million last year.”

Reluctant because, according to Sinatra, the company is currently trying to cut back and stay small. “It was probably one of our biggest years ever — and it was an accident.”

Sinatra characterises Stüssy’s third act as having a “brand-first, revenue second” philosophy, in order to avoid becoming “this big monstrosity that doesn’t stand for anything.”

The Evolution of Streetwear. The newfound reality of Streetwear and its luxury-like management academic study uncovered careful brand custodianship.

It’s not clothing; it’s an asset class

Part of the bubble feel within the streetwear industry is due to customer behaviour. For many people, street wear is no longer a wardrobe staple. Instead it becomes an alternative investment instrument. Supreme items and tier zero Nike releases are resold for profit like a day trader on the stock market.

Many of the start-ups supported by the community play to this ‘day trader’ archetype. It is only a matter of time for the likes of Bonham’s and Sotherby’s get in on the act.

A key problem with the market is that trainers aren’t like a Swiss watch or a classic car. They become unusable in less than a decade as the soles degrade and adhesive breaks down.

There is the apocryphal story of a Wall Street stock broker getting out before the great stock market crash. The indicator to pull his money out was a taxi driver or a shoe shine boy giving stock tips.

Streetwear is at a similar stage with school-age teenagers dealing must-have items as a business. What would a reset look like in the streetwear industry? What would be the knock-on effect for the luxury sector?

More information
USA Streetwear Market Research Report 2015 | WeConnectFashion
Louis Vuitton, Supreme and the tangled relationship between streetwear and luxury brands | renaissance chambara
New Balance Super Team 33 – Elements Collection | High Snobriety
New Balance ST33 – The Fanzine Collection | High Snobriety
1400 Super Team 33 (ST33) trio | New Balance blog – the infamous fish pack
How Stüssy Became a $50 Million Global Streetwear Brand Without Selling Out | BoF (Business of Fashion)
The Evolution of Streetwear. The newfound reality of Streetwear and its luxury-like management by de Macedo & Machado, Universidade Católica Portuguesa (2015) – PDF

* in the interest of full disclosure, New Balance is a former client.

Online ethics in a time of unreasonable behaviour

Much of my social channels are filled with outrage and discussion about what is perceived as unreasonable behaviour.

Tea Party Express at the Minnesota capitol

On one hand we had filter bubbles that allowed audiences to stay isolated, apparently only seeing the content which broadly fitted their world view. For the metropolitan elite, its a steady diet of virtue signalling. For the right it is the Illuminati / New World Order view of an aloof elite.

On the other hand we have voices that break through and are generally viewed as abhorrent by those in my social sphere.  The archetype of the breakthrough voice would be Milo Yiannopoulos. Yiannopoulos is a complex character who has gone from post modern poet who borrowed from pop music and television without attribution, to technology journalist and a libertarian who has become a figurehead of the alt-right. Along the way his wardrobe has changed from a preppy sloan look to a supporting character from the original version of Miami Vice.

Yiannopoulos is very adept at provoking a response from his opponents that rallies his supporters since they think it is evidence of the backlash from an omnipotent elite.

Those on the right would point to figures like Kerry-Anne Mendoza, the editor in chief of The Canary – who has been accused of sensationalist or irresponsible journalism.

The underlying element is that everyone cannot agree on what the problem actually is. Silicon Valley is lining up to filter out the worst excesses of the right; partly because engineer political views and advertiser views are largely aligned.

Generally engineers are degree educated so tend to be libertarian and socially liberal. They will support diversity and often work in multi-national teams. They are acutely aware of the power that their technology has which is why privacy tends to be most politicised amongst the tech-literate. Whilst large corporates would like to do what made the most commercial sense, there is a tension in Silicon Valley between this desire and the ability to hold on to engineers to do the work.

At the other end of the spectrum right wingers are trying to crowd fund a lawsuit against Twitter for for discrimination against conservatives and violations of antitrust regulation. WeSearchr – the crowd-fund platform equate Twitter making a call is equated to discrimination in the American South during the 1960s.

Ken White, attorney at Brown White & Osborn LLP and blogger on First Amendment issues, disagrees.

“WeSearchr’s claims of censorship and discrimination are frivolous,” he told me in an email. “Twitter may be ‘censoring’ in a colloquial way, but it’s a private platform and not governed by the First Amendment. It’s free to kick people off for speech it doesn’t like unless doing so runs afoul of a particular federal or state statute, and WeSearchr hasn’t cited a plausible relevant one.”

“Antitrust law is very complicated and it’s pointless to speculate about what WeSearchr thinks it means by citing it,” he said. “But antitrust law doesn’t say ‘it’s illegal to be a big company that dominates a field.’ Generally it restricts anti-competitive practices, and WeSearchr has never credibly identified any.”

Secondly there is research done by Demos to suggest that those of use with more liberal values have a looser social bubble and are likely to be more aware of inflammatory commentary by those with more populist views.

People with more polarized political affiliations tend to be more inward-facing than people with more moderate political affiliations. In short, the echo chamber effect is more pronounced the further a group is from the centre.

Conversely, those who hold more extreme views will feel emboldened as part of an enclosed community of like mined people.

What should be done?

Demos suggests that the mainstream news as a point at which the different opinions are most likely to meet. However, the very subjective viewpoint of different mainstream news outlets imply that this isn’t likely to happen.

The technology companies have made it clear that they will try and curb the worst excesses of the populist faction online. My sense is that it will fuel their sense of persecution  and provide a point to rally around.

Should anything be done?

More information
Canary in the pit | Private Eye
The Alt-Right Is Trying to Crowdfund Twitter’s Destruction | Motherboard
Talking to ourselves | Demos

Great interview with Adam Curtis

I’ve been watching a lot of Curtis’ work recently. HyperNormalisation, The Mayfair Set, The Trap, The Century of the Self, Bitter Lake and Pandora’s Box.

More information
Just Adam Curtis channel on YouTube – has curated many of his documentaries.

Louis Vuitton, Supreme and the tangled relationship between streetwear and luxury brands

The recent collaboration between New York’s Supreme and Louis Vuitton seems like a natural fit.  The reality is that luxury and streetwear have been dancing around each other for a good while.

Snide started it all

Snide was slang in the 1980s for fake or counterfeit. Hip Hop and the Caribbean-influenced Buffalo movement in the UK each used counterfeit and real luxury in their own way.

Daniel Day, better known as Dapper Dan was a was a Harlem-based craftsman and business man who dressed a lot of New York based artists from the golden age of hip hop. Dan’s first hip hop client was LL Cool J back in 1985. Dan’s style was luxe, the finest silks and furs were standard issue – think Puff Daddy before Puff Daddy. They went for customised outfits with their branding on which Dan provided. As the scene took off Dan incorporated suit lining material (which replicated the likes of the Fendi, Bally  or MCM brands) and Gucci or Louis Vuitton branded vinyl to make one-off products.

He customised trainers, clothing and even car interiors. Dan’s own Jeep Wrangler had an interior retrimmed in MCM branded vinyl.

Much of the luxury branding Dan used was coming in from Korean factories which at that time supplied the fake trade. Now similar products would have come out of China. I took a trip to the South China City complex in 2010 where fabric suppliers would offer Louis Vuitton labels and Supreme tags side-by-side.  I can only imagine that the Korean suppliers of the 1980s  had similar markets in textile industry centres like Deagu. Outside of hip hop, Dan was the go-to tailor for all the hustlers in Harlem – so you can see how he could have got the hook-up into the counterfeit suppliers.

At the time hip hop culture was not in a relationship with brands who where concerned about how it might affect them. LL Cool J was the first artist to get a deal with Le Coq Sportif. Run DMC got a long term deal with Adidas after their single ‘My Adidas’ became successful. But these were the exceptions to the rule.  So with Dan’s help they co-opted the brands to try and demonstrate success.

Over in the UK, the Buffalo collective of stylists, artists and photographers including Ray Petri, Jamie Morgan, Barry Kamen (who modelled for Petri), Mark Lebon and Cameron McVey. Buffalo was known as an attitude, which threw contrasting styles together and filtered into fashion shoots and influenced the collections of major designers including Yohji Yamamoto, Jean Paul Gaultier and Comme des Garçons. Even if you didn’t know what Buffalo was, you would have recognised the aesthetic from the likes of i-D, Blitz, New Musical Express and Arena. 

Buffalo mixed Armani jackets with Doctor Martens work boots, or a Puma bobble hat. Petri used music to sound track his process and this was pretty similar to the kind of stuff that influenced street wear pioneer Shawn Stussy over in California. Motown and hip-hop to dub reggae was the sound which explains the Feeling Irie t-shirts created by the white surfboard maker.

If you thought Bros looked cool in their MA-1 bomber jackets and stone washed Levi’s 501 jeans – there was a direct stylistic line back to Buffalo – rehabilitating the items from their link to skinhead culture.

Buffalo permeated into the street style of the decade; influencing the likes of Soul II Soul. Meanwhile over in Bristol The Wild Bunch were yet to morph into Massive Attack. Two members headed to London; producer Nelle Hooper and Miles Johnson (aka DJ Milo who went on to work in New York and Japan). A shoot was organised by i-D magazine and they turned up wearing their street clothes alongside DJ Dave Dorrell and model / stylist Barnsley. At the time, it was considered to be ‘very Buffalo’ in feel, but Dave Dorrell admitted in an interview that they had just came as they were. Dorrell wore his t-shirt as ‘advertising’ for it.

buffalo

The Hermes t-shirt and belt were snide, the Chanel Number 5 t-shirt sported by Dave Dorrell were being knocked out by a group of friends. Young people in London co-opted brands just like the hip-hop artists heading to Dapper Dan’s in Harlem.

Homage

From 1980, surfer Shawn Stussy had been growing an clothing empire of what we would now recognise as streetwear. Stussy had originally came up with the t-shirts as an adjunct and advertisement of his main business – selling surfboards. But the clothing hit emerging culture: skating, punk, hip-hop and took on a life of its own. It went global through Stussy’s ‘tribe’ of friends that he made along the way.

Stussy is known for his eclectic influences and mixing media: old photographs alongside his own typography. In a way that was unheard of in brand circles at the time, Stussy manifested his brands in lots of different ways. The back to back SS logo inside a circle was a straight rip from Chanel; the repeating logo motif that appeared in other designs was a nod to MCM and Louis Vuitton.

All of this went into the cultural melting pot of world cities like Tokyo, New York, London and Los Angeles. Stussy went on to do collaborations from a specially designed party t-shirt for i-D magazine’s birthday party to the cover art of Malcolm Maclaren records. Collaboration with mundane and high-end brands is backed into streetwear’s DNA.

Coke Zero x Neighborhood limited edition cans

(Neighborhood x Coke Zero was something I was involved with during my time in Hong Kong.)

Japan with its engrained sense of quality and wabisabi took the Buffalo mix-and-match approach to the next level. Japan’s own streetwear labels like Visivim, Neighborhood, W-Taps, The Real McCoy and A Bathing Ape (BAPE) took streetwear product quality, exclusivity and price points into luxury brand territory. That didn’t stop BAPE from making a snide versions of various Rolex models under the ‘Bapex’ brand.

Bapex

Some two decades later Supreme came up in New York. The brand takes design appropriation and homage to a new level. Every piece Supreme seems to do is a reference to something else. The famous box logo rips from Barbara Kruger’s piece ‘I shop therefore I am’. From taking a snide swipe at consumerism to ending up in the belly of the beast took Supreme a relatively short time. This heritage of appropriation didn’t stop Supreme from using legal means against people it felt had appropriated its ‘look’.

In an ironic twist of fate, Supreme was sued by Louis Vuitton in 2000 and yet the 2017 collaboration looks exceptionally similar to the offending items…

The last time I shared this story the page was just at 2k followers. With the collaboration officially announced today- and the page having 40k more followers since then- I figure it’s time to re-share. The year was 2000, and a 6 year old Supreme took their hands at referencing a high fashion brand as they did early on (Burberry, Gucci,) this time with Louis Vuitton. Box Logo tees (and stickers), beanies, 5 panels, bucket hats, and skateboard decks all featured the Supreme Monogram logo (pictured right). Within two weeks, Vuitton sends in a cease and desist and apparently, ordered Supreme to burn the remaining available stock. Clearly, many of the products from 2000 are still in the resell market, circulating today. Now we arrive at today’s FW Louis Vuitton fashion show. As most everyone is aware by now, Supreme is in fact collaborating with the luxury brand for a July- into fall collection. I’ve seen quite a few pieces from the collaboration (20+, check @supreme__hustle @supreme_access and @supreme_leaks_news for more pics) and it’s panning out to be Supremes largest collaboration to date. It’s interesting to see the references of both brands within the collaboration- from old Dapper Dan bootleg Louis pieces, to authentic ones, to Supremes monogram box logo and skateboard desks (pictured left). 17 years later and @mrkimjones proves that time can mend all wounds (amongst other things). Excited to see what all will release alongside this legendary collaboration. #supremeforsale #supreme4sale

A photo posted by Supreme (@supreme_copies) on

The new customers

North East Asia’s fast growing economies had been borne out of learning from developed market expertise, state directed focus on exports and ruthless weeding out of weaker businesses. Intellectual property was cast aside at various points. Korea, Hong Kong, Japan and China went from making knock-off products to displacing Europe and the US as the leading luxury markets.

Asian luxury consumers, particularly those second generation rich in China were younger than the typical customer luxury brands cater too. These consumers bought product as they travelled taking in style influences as they went. First from nearby markets like Japan, Hong Kong and Singapore and then Korea. This drew from a melange of hip hop, streetwear, Buffalo styling and contemporary western designers like Vivienne Westwood – as well as the more matronly styles of the traditional European luxury houses.

The luxury brands had to adapt. They brought in new designers who themselves were drawing from similar influences.  These designers also collaborated with sportswear brands like Alexander McQueen and Puma or Jeremy Scott and Raf Simons for Adidas.

Luxury brands got seriously into new product categories making luxe versions of training shoes that could be charitably called a homage to the like of Nike’s Air Force 1.

Bringing things full circle

As the supreme_copies Instagram account notes the collaboration with Supreme and Louis Vuitton brings things full circle with the pieces having a nod to Dapper Dan’s custom work as well as Supreme’s own ‘homage’.  Luxury brand MCM (Michael Cromer München), which Dan borrowed from extensively in the 1980s was restructured in 1997 with shops and brand being sold separately. The brand was eventually acquired eight years later by the Korean Sungjoo Group. Korea now has its own fast developing luxury fashion and cosmetics brand industry. Textile city Deagu which was the likely source of Dapper Dan’s fabric is now a fashion and luxury business hub in its own right. The Korean entertainment industry is a trend setter throughout Asia. For instance, Hallyu drama My Love From A Star drove breakout sales for the Jimmy Choo ‘Abel’ shoe.

The only question I still have is why did a move like Louis Vuitton’s collaboration with Supreme take so long? The luxury brands spend a lot on customer insight, they were using social listening far longer than they had been on social media. They know that a customer wearing their jacket could have a Visivim backpack slung over the shoulder and a pair of Adidas Stan Smiths on their feet. Customers mix-and-match Buffalo style for all but the most formal occasions. For streetwear brands, collaboration is in their DNA and they get an additional leg-up in the quality stakes.

More information
Ray Petri
How Buffalo shaped the landscape of 80s fashion – Dazed
Dave Dorrell interview part one | Test Pressing
Dapper Dan
Barbara Kruger Responds to Supreme’s Lawsuit: ‘A Ridiculous Clusterf**k of Totally Uncool Jokers’ | Complex
Volume and wealth make Chinese millennials a lucrative target market: GfK | Luxury Daily
Just why are Louis Vuitton and other high-end retailers abandoning China? | South China Morning Post – although Chinese shoppers consumed 46 per cent of luxury goods around the world, their purchases in their home market accounted for only 10 per cent of global sales, falling from 11 per cent in 2012 and 13 per cent in 2013
How a Jimmy Choo Shoe Became a Global Best Seller – WSJ

Technology companies, we have to talk about China

Uber has been cited as an example of how US technology companies can’t succeed in China, but the wrong lessons are being learned. Let’s look at a couple of examples.

Facebook

Facebook is viewed as having ‘failed’ in China. There are two parts to this. First of all lets talk about Facebook’s business model, simply put it monetises consumers attention by selling advertising and related services to businesses.  In order to get consumers in a relevant market, it has to comply with local laws. In the EU it has a relatively easy ride as it is policed by the Irish government for compliance with EU regulations.

China has taken much more of hands on regulatory approach to the internet, like all media. Much of this is down to keeping a ‘harmonious’ society. You might not like the way they do it, but the party views internal pressures in a similar way to Western views on terrorism. Whether that terrorism in the name of Islam or black bloc anarchists.

China has an extensive censorship mechanism, it is a part of doing business there. Whilst the content maybe different, it is similar to the censorship structure for the UK in many respects:

  • Government steered industry practice
  • Legislation

One of the big differences in the UK is site blocking to protect commercial rather than government interests such as sporting event rights. Facebook chose not to implement systems that would make it compliant in China – so it isn’t available to ordinary Chinese consumers. Facebook does sell advertising in China to companies who want to reach western consumers. It has been successful in its advertising sales, sometimes to the detriment of western consumers. State-owned enterprise (SOE) Air China features as a case study for Facebook’s advertising business. San Francisco-based Papaya Mobile has built a successful business providing an online portal that allows Chinese businesses to target Facebook users abroad. I’d argue that Facebook isn’t failing in China.

If Facebook wanted to get Chinese consumers on board it had three market entry routes:

  • Build a separate Chinese product. This is something that US companies generally don’t do, they may localise the product but they avoid forking the product
  • Build infrastructure that complies with Chinese regulations. Google had done this in the past, before they chose not to
  • Have a local partner do the relevant work. Skype successfully entered the Chinese market with Chinese partner TOM. The Chinese client of Skype is known to allow government listening and weaker encryption. But in a post-Snowden world that shouldn’t be too surprising, the Chinese lack the subtlety of other countries security apparatus in their implementation but the goals are similar

Facebook somewhere along the line decided that they didn’t want to enter the Chinese market for consumers as is; but may do in the future if market dynamics change.

It is notable that Facebook’s growth in both Korea and Japan was slower than comparable western countries. Local platforms addressed the market better (KakaoTalk) and social norms of ‘nick name’ identities allowed to Twitter to become a comparative success in Japan.

Google

Google had entered China in 2005. They hired a local executive to run the business who had previously worked at Microsoft. Four years later they were third in the market behind local firms Baidu and Soso (Tencent subsidiary). Google had an estimated 29% market share.

So Google was in third place before it had legal issues in China. Why was it in third place? Google is thought to have under-estimated the growth rate in terms of number of web pages of the Chinese internet. In the same way that Yahoo! and Bing under-indexed the western web and paid for it by losing market share to Google, Google lost out to Baidu. This was about localisation and agility rather than the system being gamed against it. Google hasn’t indexed non-Roman languages as well as English, French etc.

Google was particularly beloved of those Chinese who had a more international life; scientific researchers, journalists, bankers, marketers and the more cosmopolitan members of the middle class. But for the average Chinese consumer, other search engines did a better job.

Google services ran into trouble with a YouTube video showing security forces and protestors in Tibet. Google took action in the Chinese market when Chinese dissidents had their Gmail accounts hacked. Again in a post-Snowden world this isn’t the shocking scandal it would have once been. Complaints in the US together with this incident meant that Google was prepared to give up on Chinese consumers. The business still has an R&D team in China and works with manufacturers on Android.

So why do American companies succeed elsewhere?

The simple answer is one of scale. The US is a single country with largely the same regulatory framework, a single language, good infrastructure and access to large amounts of capital. It is a market for approximately 324 million people. This allows businesses to grow rapidly to a scale that is internationally competitive.

By comparison although the EU has an addressable population of just over 510 million people, you have different legal systems (though it is becoming more harmonised by the EU). You have 24 languages, a common currency but diverse banking systems.

This comparative lack of scale in EU technology start-ups has two effects:

  • They are harder to grow as there isn’t a comparable domestic market to incubate businesses. If they do grow, the better access of capital allows an EU start-up to be bought out. Look at last.fm, DeepMind or ARM as examples of this.  Some businesses have managed to break like Spotify as they tapped into US funding. It is also pertinent to point out that Spotify isn’t make money
  • With some noticeable exceptions like Spotify, getting capital to grow a business internationally is much harder. It isn’t realistic for a European start-up to pursue the Amazon / Uber model of betting against competition by assuming that they will always have access to cheap plentiful capital

This has meant that Facebook, Google and the like have risen largely unopposed in Europe. They have found it so easy that they’ve gained monopoly levels of market share. This is unlikely to change anytime soon. At best Europe acts like a ‘feeder team’ of talent and IP to US start-ups. Where Europe is successful is largely based on past dominance in legacy industry sectors like vehicle manufacture and pharmaceuticals. This also partly explains Europe’s stagnant growth.

China is different

China is the polar opposite of Europe. It has an addressable market for 1.4 billion people. Whilst there are many dialects in China the party railroaded Mandarin as the lingua franca and simplified Chinese as a common written language.  Live and incomes in the tier one cities would be comparable to parts of Europe. Economic growth has slowed to 6 per cent a year, but the economy is still flush with capital.

A huge population means a huge pool of qualified staff. You combine this with a large amount of capital and you have a business than can out-Uber Uber.

The culture of China is different. Chinese consumers like to go to Starbucks and KFC, use Apple products and wear luxury fashion brands; but only because these fit into Chinese cultural constructs. That means that products need to be optimised for the local market.

China has been through huge change since the rise of the party, which means that the owner executives of these companies have have a greater desire for risk to capitalise on ‘the now’.

This means that most of the advantages Silicon Valley has: agility of action, talent and capital are negated in their competition in China. In addition, since they committed to an approach that already works, adaptation to local market needs are limited. This is interpreted by the Chinese counterparts as hubris; the reality is more subtle.

China does have strategic interests which means that it regulates ‘state secrets’ very carefully. Mapping technology is carefully controlled. It has tried to use its size to benefit its businesses. In the same way that the EU through ETSI defined the GSM standard, the Chinese government tried to do the same with TD-CDMA. The reality is that favoured companies like Huawei have managed to allow their clients to get cheap funding for purchases via Chinese state-owned banks.

Like the US government, the Chinese government uses research funding and infrastructure spending to direct some aspects of technological development. Since the administration of Hu Jintao, the Internet of Things (IoT) has been a government focus.

The danger of the invincible China myth

Whilst China wants to have a world-beating successful technology sector. There are problems that comes with a perception of invisibility, China will find it hard to keep open markets. Trade negotiations will become intractable as the other party sees no upsides to working with China. An eco-system where foreigners have a modicum of success is a better outcome for the Chinese government.

Uber’s problems were entirely of their own making, their choice to go into China was likely their first error. Not because it is excessively gained against them, but because they didn’t have any comparative advantages over Didi.

More information
Uber has destroyed the Western myth that companies can grow huge in China without being Chinese
Content filtering by UK ISPs | Open Rights Group Wiki
Facebook “Will Do Everything We Can” To Address Shady Dress Retailers | Buzzfeed News
Facebook for Business | Air China
Papaya Shoptimize | Papaya Mobile
China listening in on Skype – Microsoft assumes you approve | GreatFire.org
Spotify financial results show struggle to make streaming music profitable – The Guardian