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.
HNA in chaos as internal divisions erupt in public | Financial Times – One investor who sought to buy a large real estate portfolio from HNA in late 2018 said that the deal fell through because it was no longer clear who was in control of the assets – this is interesting when you start about thinking allegations of all Chinese businesses (like Huawei) essentially being state-directed businesses. Especially when you consider it in the context
What really happens to the clothes you donate | Macleans – interesting complex supply chain for fibres and nothing. Also interesting how grading of garments stayed within the Asian diaspora formerly based in the British colonies of East Africa
Interesting interpretation of the current approach to online harmonisation by the Chinese government. There is an opinion that China’s censorship mechanisms are somehow overwhelmed. I don’t think that this is the case at all. Instead I believe its part of their wider approach to online harmonisation – As Virus Spreads, Anger Floods Chinese Social Media – The New York Times – this isn’t a government apparatus operating from weakness but smart. Online harmonisation allows just enough venting to stop it boiling over into angry action but not enough for a Velvet Revolution. The clue is in the Chinese government’s own name for this process online harmonisation – to give a harmonious Chinese society
Nightmares on wax: the environmental impact of the vinyl revival | Music | The Guardian – digital media is physical media, too. Although digital audio files seem virtual, they rely on infrastructures of data storage, processing and transmission that have potentially higher greenhouse gas emissions than the petrochemical plastics used in the production of more obviously physical formats such as LPs – to stream music is to burn coal, uranium and gas – vegan vintage wearing gen-z will look back on streaming not only as a cultural disaster, but a planetary one. Streaming is the music industry analogue to restaurant’s plastic straws and styrofoam cups
23andMe lays off 100 people, CEO Anne Wojcicki explains why | CNBC – surprised to see market turn… – I was surprised to see this late 20th century version of a faddish product from the Sharper Image catalogue do so well for so long given the privacy implications of it
Is Singapore’s ‘perfect’ economy coming apart? | Financial Times – Mid-level jobs in manufacturing and multinational companies are disappearing and being replaced by technology and financial services roles, which are easier to fill with younger, more affordable migrants. Singaporeans like Aziz struggle to get back into the workforce. Only half of retrenched over-50s are re-employed full time within six months. Nearly three-quarters of people laid off in Singapore in the third quarter of last year, the most recently available data, were what the country classifies as professionals, managers, executives and technicians, or PMETs – I’ve been re-reading John Naisbitt’s Megatrends at the moment and its interesting how these classic knowledge worker roles have been disappearing – whereas just 30 years ago they were the future. It does make me a bit skeptical of the ‘every kid should learn how to code predictions’. The increasing consumer debt is another interesting aspect of this
Google acquires Pointy, a startup to help brick-and-mortar retailers list products online, for $163M | TechCrunch – built hardware and software technology to help physical retailers — specifically those that might not already have an extensive e-commerce storefront detailing in-store inventory — get their products discoverable online without any extra work – reminds me of the kind of thing you’d expect Tencent or Alibaba to do as China has led in O2O e-tailing. Pointy also fits into Google’s mission to organising all the worlds information. Over time, I can only see Pointy as being bad for retail margins.
The problem with the idea of Pointy is that it treats all stock as equal, in reality the cost of an item isn’t only its price. A point that Pointy misses. There are also transport costs, time and convenience costs involved. For a real world story indexed by Pointy, the consideration of being able to drive to a nearby story and get something immediately isn’t a factor. How does Pointy know about the hassle of that same trip if one has to walk there and back instead? Does Pointy consider how heavy or bulky a product might be?
Mediatel: Newsline: How the UK is quietly importing a sinister political phenomenon – “I have read so many predictions and trends about journalism in the past few weeks. The most significant trend, mostly unacknowledged, is that of politicians realizing they do not need to provide access or engagement with journalists, or even tell the truth, to be electable.” – where is this going?
Make your China marketing pop with these pop culture tips – POP MART: the designer toy market in China is booming. Not that surprising given historic popularity in Hong Kong and Japan – in many respects culturally China is a laggard
Framed — Pixel Envy – three paragraphs in and it is already setting up the idea that personal privacy and public safety are two opposing ends of a gradient. That’s simply not true. A society that has less personal privacy does not inherently have better public safety; Russia and Saudi Arabia are countries with respectable HDI scores, brutal censorship and surveillance, and higher murder rates than Australia, Denmark, France, and the United Kingdom
Sugar Bear’s Don’t Scandalize Mine was a go to record for me, but I’ve never seen a music video of it until now
What Does Taiwan’s Public Think About Election Interference From China? – The Diplomat – hyper-polarization in views between DPP and KMT supporters highlights the difficulty in addressing cybersecurity and China more broadly. To reach a consensus requires first acknowledging and disrupting the echo chambers in which disinformation campaigns thrive, then the government must implement election transparency policies to more easily expose disinformation efforts. However, with increasing animosity between parties, this consensus may be hard to reach. Citizens may also be concerned that any steps the government takes are limiting their freedom of speech or other rights (paywall)
Try as It Might, Germany Isn’t Warming to Huawei – The Diplomat – Highest on their list of concerns has been the risk of exposing the future German 5G network to large-scale espionage and data theft on behalf of corporate and political actors in China. In recent years, Germany’s intelligence agencies have reported a steady increase in Chinese government-directed espionage and hacking activities against German targets, primarily with the aim of acquiring corporate secrets. China is now considered the source of the majority of cyberattacks against Germany. In 2019, some of the largest German companies confirmed that they had been targeted by a new wave of cyberattacks that likely originated with the Chinese government. During a parliamentary hearing on the issue of Huawei in October, Thomas Haldenwang, the president of Germany’s domestic intelligence agency (Bundesverfassungsschutz), claimed that Chinese espionage and cyberattacks have been expanding into more and more sectors of the economy and the state. According to Haldenwang, while Chinese cyberattacks in Germany were previously focused primarily on private corporations and technology
China Manufacturing:”Elvis Has Left the Building” | China Law Blog – “China’s rising costs, tricky regulations and increasingly unstable geopolitical situation are forcing more manufacturers to move production elsewhere” and we should expect this exodus to gain speed in 2020, “despite the prospect of a minor US-China trade truce.”
Bose and HERE Fuel AR Experience Innovation By Combining Location and Audio Technologies – Semiconductor Digest – HERE Technologies, a global leader in mapping and location platform services, today announced a collaboration with Bose Corporation to jointly enable their respective developer communities to deploy augmented reality (AR) location applications and services. This collaboration gives HERE developers access to the Bose AR platform and spatial-audio capabilities, and extends the HERE platform, positioning and mobile SDK location technologies to developers building audio AR applications and experiences. – ok so turn by turn direction or tourist style apps probably. The most interesting thing for me was that Bose AR isn’t just the audio enabled frames but recent noise cancelling headsets as well
SPH print newspaper ad sales dive 20% on year | Media | Campaign Asia – Singapore Press Holdings, the parent company of The Straits Times, Lianhe Zaobao, and other news publications, saw overall revenue drop 3.8% in the first quarter of fiscal 2020 – interesting acceleration. Part of which is down to media agencies making more money from digital and some due to changing consumer habits. I’ve started taking a print newspaper subscription again as I value the juxtaposition good print design can bring
NYT: Russian hackers successfully targeted Ukrainian gas company Burisma – Axios – Public awareness of the Burisma hack cuts both ways politically. For former Vice President Joe Biden’s campaign, it means document dumps could happen at any time, with accompanying media frenzy and potentially damaging revelations. For the Trump campaign, it means that any such revelations will come pre-tainted with a Russian label
John Lewis marketing boss Paula Nickolds departs before starting | The Drum – Anusha Couttigane, principal fashion analyst at Kantar, said that whoever takes the lead will need to rethink its long-running, and arguably tired, festive advertising strategy which has relied on blockbuster, tear-jerker creative to encourage shoppers into stores. “John Lewis needs to continue evolving its digital marketing efforts. While the company’s Christmas mascot, the accident-prone dragon Excitable Edgar, was warmly received, the debut of the brand’s Christmas advert is simply not the event it once was,” – quite a burn right there.
Sonos hits Google with lawsuit over wireless speaker patents – “Google has been blatantly and knowingly copying our patented technology” for years. Sonos and Google collaborated in 2013 to add the Play Music service to Sonos speakers, and more recently, the two worked to bring Google’s digital assistant to Sonos speakers, alongside Amazon’s counterpart, Alexa. “Despite our repeated and extensive efforts over the last few years,” Spence told the Times, “Google has not shown any willingness to work with us on a mutually beneficial solution. We’re left with no choice but to litigate,”
With nothing to lose, loners build future in China’s hollowed-out north – Reuters – “Social classes are fixed,” Li said. “The poor can never achieve anything. When you encounter problems, if you can solve it, great. There’s not much you can do otherwise.” – interesting consumer comments that explain the slow down in China’s economic growth
Dark Patterns after the GDPR: Scraping Consent Pop-ups and Demonstrating their Influence by Nouns, Liccardi, Veal, Karger and Kagal – The results of our empirical survey of CMPs today illustrates the extent to which illegal practices prevail, with vendors of CMPs turning a blind eye to — or worse, incentivising —- clearly illegal configurations of their systems. Enforcement in this area is sorely lacking. Data protection authorities should make use of automated tools like the one we have designed to expedite discovery and enforcement. Designers might help here to design tools for regulators, rather than just for users or for websites. Reg- ulators should also work further upstream and consider placing requirements on the vendors of CMPs to only allow compliant designs to be placed on the market. (PDF)
Inside China’s Push to Turn Muslim Minorities Into an Army of Workers – The New York Times – wants to remake them into loyal blue collar workers. Where this gets interesting is with China’s belt and road neighbours like Kazakhstan who have families that span the borders. China’s muslim minorities push has a wider impact in the region. There is likely to be careful consideration of what is going on with the muslim minorities by Mongolia and South Korea in particular. As they will be concerned with their ethnic brethren across the border.
‘Social Mentality’ Report Reveals Telling Trends in Happiness | Sixth Tone – Chinese people are fed up with what they perceive as a reckless lack of concern for their privacy. Over 90% of nearly 3,200 people surveyed last year said they were worried about third-party companies leaking their personal data, while just 10% said they were “very optimistic” when it came to trusting such companies
China’s impending Minsky moment | Financial Times – China’s debt-to-gross domestic product ratio is more than 300 per cent and continues on a dangerously upward trajectory. The Chinese authorities are aware of the situation and the risks but they continually refrain from acting with the necessary force. They are concerned that actions to confront rising domestic debt will constrain economic growth. They are wrong in believing there will ever be a good time to curb financial excesses, as they fail to comprehend that delay now will make action in the future harder and costlier
Great video that explains Chinese boomers quite nicely
Apple Captures 66% of the Smartphone Industry’s Profits in Q3 leaving all of their Competitors Combined in the Dust – Patently Apple – it is becoming a challenge for Chinese smartphone brands to increase their smartphone ASPs and margins due to a combination of longer consumer holding periods and Apple lowering pricing on some key SKUs, which has limited the headroom that Chinese vendors had used to increase their ASPs – in the long term Huawei having to be vertically integrated all the way up the stack could be to their benefit
Gildo Zegna: tailoring masculinity for changing tastes | Financial Times – luxury goods industry is feeling the heat of technological disruption, social upheaval and identity politics. Furthermore, within the high end fashion industry few items of clothing are facing more pressure from falling consumer demand than the one that made the Zegna family rich: the traditional men’s suit. “The big challenge we face is a rethinking of masculinity,” he says. – I think streetwear is interesting because of the reassurance it provides on masculinity. The basics of streetwear go back to the mid-century sports basics. The hooded top, jeans, t-shirts, plaid shirts, Letterman jacket, track jacket etc
A Surveillance Net Blankets China’s Cities, Giving Police Vast Powers – The New York Times – Chinese authorities are knitting together old and state-of-the-art technologies — phone scanners, facial-recognition cameras, face and fingerprint databases and many others — into sweeping tools for authoritarian control, according to police and private databases examined by The New York Times. Once combined and fully operational, the tools can help police grab the identities of people as they walk down the street, find out who they are meeting with and identify who does and doesn’t belong to the Communist Party. The United States and other countries use some of the same techniques to track terrorists or drug lords. Chinese cities want to use them to track everybody.
Is LVMH’s Digital Transformation Working? | Luxury Society – “Over the last few years our market has become highly fragmented,” it added. “Customer journeys and purchasing habits have become more complex. Now, in addition to magazines and other traditional media, our customers – especially young people – use a range of digital options to stay informed, communicate with friends and shop. Brand awareness and customer engagement are built on these many different touchpoints.”
