Economics or the dismal science was something I felt that I needed to include as it provides the context for business and consumption.
Prior to the 20th century, economics was the pursuit of gentleman scholars. The foundation of it is considered to be Adam Smith when he published is work An Inquiry into the Nature and Causes of the Wealth of Nations. Smith outlined one of the core tenets of classical economics: each individual is driven by self-interest and can exert only a negligible influence on prices. And it was the start of assumptions that economists model around that don’t mirror real life all the time.
What really is a rational decision maker? Do consumers always make rational decisions? Do they make decisions that maximise their economic benefit?
The problem is that they might do actions that are rational to them:
Reducing choice when they are overwhelmed
Looking for a little luxury to comfort them over time. Which was the sales of Cadbury chocolate and Revlon lipstick were known to rise in a recession
Luxury goods in general make little sense from a ration decision point of view until you realise the value of what they signal
Having a smartphone yet buying watches. Japanese consumers were known to still buy watches to show that they care about the time to employers when they could easily check their smartphone screen
All of which makes the subject area of high interest to me as a marketer. It also explains the amount of focus now being done by economists on the behavioural aspect of things.
Disclosure: work thing. The Feelings was put together by some of my colleagues at McCann for the Laura Hyde Foundation. The Feelings is a film put together to raise awareness of the serious difficulties that frontline workers face, and how this can affect them on an ongoing basis, particularly if they don’t seek support. Each of the characters represents some of the feelings that workers can be holding down in an effort to meet expectations of outward stoicism, appear professional or just hold it together. This can include feelings of ‘rising dread’, ‘red rage’, and ‘powerless’.
You can find out more about the mental health impact on our frontline workers here. World Mental Health day was Monday morning and as a business we’ve been looking at agency member health on an ongoing basis.
Malaysian independence
Tunku Abdul Rahman was a Malaysian statesman and lawyer who served as the first prime minister of Malaysia and the head of government of its predecessor states from 1955 to 1970. Tunku is a royal title which gives an idea of the respect that he is held. He was the first chief minister of the Federation of Malaya from 1955 to 1957. He supervised the independence process that culminated on 31 August 1957. As Malaya’s first prime minister he dominated politics there for the next 13 years. In 1963, he successfully incorporated the Federation of Malaya, Sabah, Sarawak, and Singapore into the state of Malaysia. However, tensions between the Malay and Chinese communities resulted in Singapore’s expulsion in 1965. His performance during race riots in Kuala Lumpur in 1969 led to his resignation the following year.
Discrimination
This opened the door a succession of economic policies that favoured Malays at the expense of ethnic Indians and Chinese Malaysians The New Economic Policy was put in place for 20 years. It was replaced by National Development Policy in 1990 and the National Vision Policy (NVP) in 2001. But all of this was to happen in the future. At the time of independence Tunku Abdul Rahman was a hero for all communities and his speeches unified rather than divided the different communities of the Malaya Federation. Cadburys put this advert together to celebrate Malaya independence and capture the memories of someone who saw Rahman speak.
The global landscape for artificial intelligence
INFER did an interesting talk that showcased which countries are punching above their weight in development around machine learning. You’d be surprised by many of the results.
Pui Yuet
Pui yuet nannies bring traditional techniques for well-heeled Hong Kong new mothers. It brings a mix of common sense, traditional Chinese medicine and folklore together to get mother and baby off to the best start.
Singaporean OnlyFans creatives
Our Grandfather Story have done some fantastic interviews with OnlyFans creatives who tell their stories. Its complicated, heart-breaking and empowering in turns.
I wasn’t aware of Honey Badger Cummins until a couple of days ago. Cummins was a former professional rugby union player who managed to parley his career into work on television and a professional social media following. Nick Honey Badger Cummins had played 15 times for his country, including the international rugby sevens competition and for top flight clubs in Australia and Japan.
Following his retirement as a professional sportsman, he had appeared in a number of reality television show and gained a following as a travel influencer on social media. His travel influencer status, personality profile in Australia and former rugby sevens career were obvious points of interest for the Hong Kong Tourist Board.
Propaganda
The problem for Honey Badger Cummins is that he’s at the centre of Hong Kong’s campaign to remake its international image. This is after its COVID-19 isolation, 2019 protests with brutal policing actions, the national security law mass imprisonment, crushed media | civil society sectors and the large amount of Hong Kongers who have gone into exile. It isn’t perceived as a ‘straight tourism’ brief, but instead part of a white-washing exercise.
https://youtu.be/rWhrrbUj9Ws
The comments on this video are universally negative in nature at the time of writing this post.
Restaurants and other venues portrayed in the videos have closed down and Cummins flouts what would be now current masking regulations and QRcode health app tracking. This is due to the footage having been shot at the beginning of 2020. Even that timing shows a lack of good judgement by Honey Badger Cummins. But Cummins isn’t the only party to blame.
Poor judgement by Always Human
The Australian creative agency Always Human; which created the videos being used, should be ashamed of themselves in terms of their ethical stance. The content was originally shot in January 2020, when the brutal police crackdown was still fresh in the minds of the general public around the world. Its not a good look for the other agency clients like Asics, GoPro, HP, Nike, Oakley, Under Armour and Volkswagen to be associated with the agency.
Virgin Atlantic pulls out of Hong Kong after 30 years | Telegraph – Virgin Atlantic is pulling out of Hong Kong, scrapping flights and shutting its offices as strict Covid restrictions batter the island’s status as a global financial hub. Ending three decades of flying to Hong Kong, Sir Richard Branson’s airline blamed the closure of Russian airspace as well as the declining profitability of the route. American Airlines and Virgin Australia have also backed away from Hong Kong. I could see other airlines from Europe backing away from Hong Kong due to the disadvantage that Russian airspace provides to them versus Cathay Pacific
Luxury Daily | “A small, concrete happiness”: Why luxury brands in China love cafés – Facing weakening consumer demand, luxury brands are building experiential cafés across China to pursue new consumer touch points and growth areas – it reminds me of the ‘Revlon effect’. During recessions consumers who can’t afford big luxuries like small luxuries like a lipstick or a chocolate bar
Hallyu The Korean Wave is exhibition at the Victoria and Albert Museum. Hallyu is actually a contraction of Han ryu which literally means The Korean Wave. Han meaning Korean (so the Korean written language is called Hangul) and ryu meaning wave.
Forgotten War
The exhibition was interesting from a London audience perspective. You have to be a real history buff to know that the Korean war even happened. The olympics put Korea temporarily in western consciousness and then it submerged again. It was only since I started writing this blog that The Korean Wave started to become part of the London zeitgeist, let alone the rest of the country.
Hallyu now
K-pop group Black Pink is now number one in the UK album charts with their sophomore release and there will be at least one Korean option when you open Uber Eats. Korean films and series (usually the most transgressive ones) are popular on Netflix and in arthouse cinemas.
Korean reality
The reality of The Korean Wave is more complex. It was something that was over 50 years in the making, going back at least to the compact that Park Chung-hee made with Korean business leaders at the expense of economic inequality, human rights and labour rights. The Korean Wave was birthed by a traumatic history of authoritarian rule. The Korean Wave wouldn’t have been possible without the economic growth driven by rapid economic growth and industrialisation. This in turn created the flywheel effect as Jim Collins would put it, that helped Korea become a cultural powerhouse as well as an economic one.
The exhibition skims the surface of this complexity, but is stylish and entertaining in nature.
The exhibition is running until February next year.
Expats Shun China Over Covid Policies, Forcing Foreign Firms to Scale Back – WSJ – “companies are even questioning whether it is responsible for them to deploy foreign staff to China when the numerous restrictions mean they are unable to guarantee a basic duty of care for them and their families,” the European business lobby in China said Wednesday in its annual report on the state of business in the country. Many of the chamber’s member companies, multinationals with a longstanding presence in the country, are downsizing, localizing and hiving off their operations in China as the number of Europeans and Britons living there roughly halved from prepandemic levels to around 60,000 in recent months, according to the chamber’s estimate. – the expat infrastructure of schools, services and food built up over decades is withering as foreigners leave. And that is probably seen as a good thing by Xi Jingping, who is looking to de-westernise China
Design
So much in this video about quality, design, sustainability, carbon footprint and the fallacies supporting electric vehicles.
Japan’s biggest K-pop fans might just be senior citizens, survey shows | SoraNews24 -Japan News – Online marketplace service Mercari studied the purchasing habits of its users between September 1 2021 and August 31 2022 to find out what products are most popular for each generation. They discovered that users who reported to be over 50 years old more frequently bought K-pop merchandise than even Gen Z.Despite competing with other popular products like character merchandise, domestic idol goods, and video games, K-pop items were a big seller among every age group. It was the third-most-purchased category for teens and the second for people in their 30s, but as it turns out, it was the most purchased category for people in their fifties and seventies! – this probably tells you a lot about how ageing is changing, not only in Japan, but elsewhere
Tinder just opened a convenience store in Japan, aimed at adults only | SoraNews24 -Japan News – Japanese convenience stores are a much-loved part of everyday life in Japan, where you can get pretty much everything your heart desires at any time of the day or night. Last weekend, however, a new convenience store popped up in Tokyo’s Shibuya district offering something that others don’t usually have in-store: love and romance. Called SwipeMart, the convenience store was run by dating app Tinder, and though it was only open from 16-19 September, it was such a resounding success there are hopes the pop-up will pop up at more locations in the future. Aimed at the over-18 crowd, the convenience store had some great freebies on offer for Tinder members, ranging from a choice of either jocks, socks, or a long-sleeve T-shirt
Sensitivities Rise As Geopolitics Takes Toll On Global Communicators – Richard Edelman penned a blogpost that questioned whether “truth will win out”, amid considerable state-sponsored disinformation activity. Edelman was referring specifically to the Russia/Ukraine conflict, but his column included reference to China’s efforts to influence public opinion. Edelman China blogpost 2022 By the end of the week, that paragraph — which was sourced directly from this WSJ article — had been excised from the post.
EU to consult on making Big Tech contribute to telco network costs | Euronews – The European Union’s executive body will launch a consultation early next year on whether tech giants should bear some of the costs of Europe’s telecoms network, EU industry chief Thierry Breton said on Friday. Europe’s telecoms operators have long lobbied for a financial contribution from U.S. tech firm’s such as Alphabet’s Google, Meta’s Facebook and Netflix, saying that they use a huge part of the internet traffic
Vetoing Victory – Israel Is Blocking (Military) Aid To Ukraine – Oryx – Israel’s refusal to provide military aid to Ukraine or even permission for other countries to do so sharply contradicts historical aid to Israel, when much of the Western world rallied behind the country when it faced invasions of its own, launching air bridges to keep it supplied, and engaging in blood donation campaigns for Israeli soldiers. Of course, the time that Israel could count on such strong support and sympathy from the Western public is long gone, and the world is unlikely to forget Israel’s inaction and deliberate obstruction of support to Ukraine
Riding The Wave Into China’s Latest Hype — Land Surfing | Jing Daily – land surfing is what a lot of people would know as a long board in skating. I first came across them 20 years ago, when I used to know a dreadlocked German photographer who got around London on one. South Korean app developer Ko Hyojoo, brought style and strong Instagram game to long boarding. From her style cutting and spinning on her board, I can see where land surfing came from. She has collaborated with a lot of fashion brands, getting an international profile with her land surfing.
Films like this one from Vogue in 2016 blew long boarding / land surfing up across Asia. I have former colleagues from Hong Kong who took up land surfing in the winter as they missed the feeling of water-skiing which they did some summer weekends.
It was only a matter of time before China’s Taobao culture picked up on the idea of land surfing.
The Professional Try-Hard Is Dead, But You Still Need to Return to the Office | Vanity Fair – It’s Malcolm Gladwell waxing emotional about how much he loves return-to-office and pleading, “Don’t you want to feel part of something?” as if the man has never heard of, like, recreational softball. It’s Mark Zuckerberg reportedly getting mad about an employee asking if Meta Days (extra vacation days introduced during the pandemic) are still on this year because, shouldn’t the pleasure of working for Meta be enough? It’s any number of investor-type herbs who’ve been warning about how quiet quitting will cause you to lose out on x dollar amount of earnings later in life
Pro-China media slam ‘minority’ of Hong Kong mourners in wake of Queen’s death — Radio Free Asia – Hong Kong historian Hans Yeung, who now lives in the U.K., said Hong Kongers’ nostalgia for colonial times was a complex emotion. “The reason we are seeing these mourning activities is that the current way of governing is different from the way it was in Hong Kong more than 20 years ago, and the emotions that result from that difference between the old and the new,” Yeung told RFA. “It’s not necessarily the idea that we miss colonial times because things were so good back then, but because the current government is so poor,” he said. Yeung said some mourners were too young to remember an era in which the Queen’s portrait was in every classroom, and TV stations shut down every night with “God Save the Queen.” He said younger people likely have read about Hong Kong before the 1997 handover to Chinese rule, and drawn their own conclusions
Ideas
Simple models predict behavior at least as well as behavioral scientists – we analyzed data from five studies in which 640 professional behavioral scientists predicted the results of one or more behavioral science experiments. We compared the behavioral scientists’ predictions to random chance, linear models, and simple heuristics like “be- havioral interventions have no effect” and “all published psychology research is false.” We find that behavioral scientists are consistently no better than – and often worse than – these simple heuristics and models. Behavioral scientists’ predictions are not only noisy but also biased. They systematically overestimate how well behavioral sci- ence “works”: overestimating the effectiveness of behavioral interventions, the impact of psychological phenomena like time discounting
How China Has Added to Its Influence Over the iPhone – The New York Times – More than ever, Apple’s Chinese employees and suppliers contributed complex work and sophisticated components for the 15th year of its marquee device, including aspects of manufacturing design, speakers and batteries, according to four people familiar with the new operations and analysts. As a result, the iPhone has gone from being a product that is designed in California and made in China to one that is a creation of both countries. The critical work provided by China reflects the country’s advancements over the past decade and a new level of involvement for Chinese engineers in the development of iPhones. After the country lured companies to its factories with legions of low-priced workers and unrivaled production capacity, its engineers and suppliers have moved up the supply chain to claim a bigger slice of the money that U.S. companies spend to create high-tech gadgets. The increased responsibilities that China has assumed for the iPhone could challenge Apple’s efforts to decrease its dependency on the country, a goal that has taken on increased urgency amid rising geopolitical tensions over Taiwan and simmering concerns in Washington about China’s ascent as a technology competitor.
Chinese mercenaries have been around longer than the belt and road. You can come across Chinese mercenaries protecting in the border areas of China such as the warlord regions of Myanmar. But now Chinese mercenaries are increasingly linked with the Belt and Road Initiative. China claims that it isn’t building an empire in Africa, across the former Soviet Union and Sri Lanka. Yet all of the private security companies that Chinese mercenaries work for are state owned. The Chinese mercenaries come out of the PLA, the PLAN marines and the PAP. That doesn’t mean that they are well trained or even well disciplined and they exist in a Chinese legal vacuum.
There is more connecting China to its empire with these Chinese mercenaries than there was for the army fighting under Clive of India for the East India Company a few centuries before. Task and Purpose goes into the subject of Chinese mercenaries in more depth.
Inside Missfresh’s hunt for investor cash ahead of collapse | Financial Times – probably one of the best comments on this article – Missfresh is only one of a number of Chinese domestic startups that sought US investors, as their own domestic private investors were unwilling to invest. For a Chinese investor, they always consider when and if the CCP may want a piece of the business, or worse take action against the promoters and management. for non performance. The lighter loss being financial and. the greater loss, life.
China’s Growth Sacrifice by Stephen S. Roach – Project Syndicate – Japanization of an increasingly debt-intensive, bubble-supported Chinese economy. An overly leveraged Chinese property sector fits this script, as does the debt-fueled expansion of state-owned enterprises since the 2008-09 global financial crisis. For China, this became the case for deleveraging, well worth the short-term price to avoid the longer-term stagnation of Japan-like lost decades. Finally, a major reversal in the ideological underpinnings of governance is also at play. As the revolutionary founder of a new Chinese state, Mao emphasized ideology over development. For Deng and his successors, it was the opposite: De-emphasis of ideology was viewed as necessary to boost economic growth through market-based “reform and opening up.” Then came Xi. Initially, there was hope that his so-called “Third Plenum Reforms” of 2013 would usher in a new era of strong economic performance. But the new ideological campaigns carried out under the general rubric of Xi Jinping Thought, including a regulatory clampdown on once-dynamic Internet platform companies and associated restrictions on online gaming, music, and private tutoring, as well as a zero-COVID policy that has led to never-ending lockdowns, have all but dashed those hopes – China was on a rocket ship that it couldn’t control, it is now trying wrestle back control at the expense of growth
Eurostar to axe direct trains from London to Disneyland Paris over Brexit | Eurostar | The Guardian – “We have taken the decision not to run the direct Disney service … in summer 2023,” it said. “While we continue to recover financially from the pandemic and monitor developments in the proposed EU entry-exit system, we need to focus on our core routes to ensure we can continue to provide the high level of service and experience that our customers rightly expect.” – not enough demand from the UK and too much hassle to run
In Myanmar, Vietnamese firms learn the political risks of backing the junta — Radio Free Asia – interesting that Burmese consumers are boycotting military-owned businesses including MyTel – a mobile carrier that VietTel has a major stake in. Also: Vietnamese firms have begun investing abroad, and, in particular, have sought a place in the 5G marketplace, especially in markets where there is residual fear of China’s communications giant Huawei. – Also: Vietnamese conglomerate THADICO, which has invested in Myanmar Plaza, the largest modern mall and office space in Yangon, ran afoul of the local population when the plaza’s security attacked civil disobedience protesters in November 2021. This led to a sustained boycott that hit the plaza’s 200 retail units hard, compelling the firm to publicly apologize