Category: korea | 韓國 | 한국 | 韓国

Annyeonghaseyo – welcome to the Korean category of this blog. This is where I share anything that relates to the Republic of Korea, business issues relating to Korea, the Korean people, Korean culture and the Korean language.

At the time of writing this category descriptor its been about 10 years since I have last been able to visit Korea. In that time the country has risen on the world stage.

There have been continual disputes with Japan and more recently continual bitter disputes with China. The Japanese disputes are related to history and territory. Korea had been occupied as part of the Imperial Japanese empire. Independence came with the end of the second world war.

The Chinese disputes are more complex. Chinese investors are buying up Korean property particularly in Seoul, Busan and Jeju island, while many Koreans can no longer get on the property ladder. Chinese tourists blitz Korean shops in a similar way to what they’ve previously done in Hong Kong.

Chinese nationalism has seen claims made on Korean cultural assets from the national dress to kimchi. Finally China has interfered in Korea’s efforts to defend itself from the threat in the north.

Often posts that appear in this category will appear in other categories as well. So if Samsung launched a new smartphone that I thought was particularly notable that might appear in wireless as well as Korea. If there is Korean subjects that you think would fit with this blog, feel free to let me know by leaving a comment in the ‘Get in touch’ section of this blog here.

September 2024 newsletter
September 2024 newsletter introduction

Welcome to my September 2024 newsletter, this newsletter marks my 14th issue. When I lived in Hong Kong and dealt with Chinese accounts, the number 4 was considered unlucky, rather like 13. 14 is even worse due to it sounding so similar to ‘is dead’ or ‘will be dead’ or ‘will be certain to die’ depending on the variant of the spoken language used. In other cultures the symbolism of 14 is more nebulous at best.

September got off to an odd start, we seem to have had all the seasons, rather than settling gently into the run up to autumn. I managed to avoid traditional mooncake during mid-autumn festival celebrations that I attended. My waistline was thankful for the #ROMO (relief of missing out).

New reader?

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

Things I’ve written.
- Being on the ground in Merseyside as the Southport stabbings unfolded gave me a different perspective on things.
- How generative AI features are affecting the Google search experience and much more.
- Not the target demographic – or how marketers and agencies are leaving money on the table.
- The mooncake crisis in China.
Books that I have read.

My reading for September 2024 slacked off a bit as real world obligations kicked in.
- The Old Woman With the Knife worked on a number of levels for me. Firstly, I loved its portrayal of modern Korean society, from the aging population to the Confucian view of seniority that makes everyday interactions more complex than other Asian societies. Without revealing too much, the old woman in question is someone in the twilight of her career and how she is coping with new up-and-coming rivals at work.
- Panic! edited by Michael Lewis. Michael Lewis became famous when he wrote an account of his career in investment banking in Liar’s Poker. His career overlapped with the 1987 financial crash. Since then he has been a writer who has documented key turns in the economy. Because of this background Lewis was the ideal person to curate a history of financial crisis from contemporary accounts at the time. Panic! covers the 1987 financial crash, the 1998 debt crisis, the dot com bubble, and the subprime mortgage crisis of 2007/8. I read the book in short bursts mainly due to asks on my time, rather than the nature of the book. Panic! seemed pertinent to read now. The publication of Pegasus Research’s iconic quantitative research on ‘burn rates’ in March 2000 on dot.com company burn rates makes it highly relevant to revisit when we are in hype cycles such as those surrounding health tech, fintech, crypto and more – if for no other reason than pointing out the folly of trying to pick winners in hype-driven public markets with a high degree of opacity.
- Klara and the Sun by Kazuo Ishiguro moved from my to be read pile to must read pile given everything that has been going on with generative AI over the the past couple of years that it has sat on my bookshelf. Ishiguro uses speculative fiction to explore the different kinds of love and attachment, alongside loss. From a machine learning perspective it poses interesting questions about applying observational learning rather than rules based learning in systems that are supposed to exist in the real world. Klara is an ‘artificial friend’ for a child who is going through ‘levelling up’. Levelling up could be seen as a euphemism for everything from the cramming schools popular in Asian education systems to the challenges humans face in an information heavy environment. Ultimately there is something more human and child-like in Klara’s experiences than the human co-protagonists.
Things I have been inspired by.

AI proficiency.

Section, the education company founded by Professor Scott Galloway has AI proficiency as a key element in its offering. They have put together research to show how low the current level of proficiency is. They consider this research a rallying cry; but the results could also be reflective of a technology adoption curve that isn’t moving at the speed of hype, which is what came through in my examination of public discussions during the summer.

Secondly, research from the Upwork Research Institute implies a higher a higher adoption rate of generative AI, but lower success rate with the outputs generating inefficiencies rather than productivity gains. Part of the problem seems to come from organisational leadership and the way generative AI is being implemented.

WARC have published a report which looks at What’s working in generative AI from a marketing perspective. Some of the ideas like synthetic data in market research are not quite in prime time yet and generative AI’s large carbon footprint can’t be ignored.

Digitalisation and brands

Harvard Business Review published research that indicated a weaker relationship between profit share and brand in certain types of businesses. On the face of it, this supports Scott Galloway’s ‘end of brand‘ hypothesis. WARC covered the research paper in depth pointing out that for each percentage gain in market share highly digitised businesses gain 0.19% increase in profit compared to 0.26% in less digital businesses. This seems to be due to a multitude of factors:
- Efficiency gains due to digitalisation have an effect on the existing profit prior to the market share. Efficiency is the main selling point of much digital automation from CRM systems to performance advertising.
- Market power of larger companies ( a la Google).
- Perceptions of quality – digital-only companies might look more reputable due to the lack of real-world signals to the contrary
Market share (and brand) still matters, but it hits different depending on the business. B2B and growth hacking business approaches gain less than consumer orientated businesses. A larger dataset of Kantar-sourced data analysed by Oxford University researchers found that better brand effects were down to ‘difference’ as in how customers see – and experience the brand – as being different enough from competitors.

FEAST

FEAST is an occasional magazine and curated set of events all about food and its ingredients. If you are a strategist working with a food or beverage client it’s well worth exploring their archive as a source of inspiration for insights given its in-depth and thoughtful arts-based approach.

Streaming plateau

I finally got to dive into Ofcom’s Media Nations research report. I recommend that if you are involved in the advertising-media industrial complex in any way shape or form, spend some time reading it. On the plus side, survey respondents consider accurate balanced news as a key part of the public service mandate of radio and television. Secondly during 2023, broadcast brought many of us together still for key events including the first episodes of tentpole series.

Ofcom

More dispiritingly, I realised that amongst the tentpole TV series was season 23 or I’m a Celebrity, Get Me Out of Here. TV advertising revenues declined faster than online video revenues grew and subscription based video on demand take-up plateaued. It’s pure speculation on my part, but this might have been reached because COVID accelerated adoption.

Finally, as a film fan who buys Blu-Rays of films that don’t appear on streaming services consistently, the amount of time watching DVDs and and Blu-Rays have a very small usage across all age groups. I don’t think that’s good news for arthouse and cult cinema.

Things I have watched.

The Crow – less of a remake of the iconic Brandon Lee film and more of a reinvention of the franchise. It’s a good if unengaging film, many of the young adult audience I went to see it with won’t have the original or the comic books as a reference point. It has been described on other parts of the net as ‘the worst movie of the year‘. This is probably a bit unfair; there is a lot of ‘straight to Netflix’ dross out there. FKA Twigs character in the film grew on me as I watched it.

The last time I saw The Terminator in a cinema was in a double bill with the then newly launched Terminator 2 at the then new Odeon multiplex in Bromborough. I got to see it again thanks to a 4K restoration. Despite having seen The Terminator several times on tape, DVD and Blu-Ray – this time it hit different. It hit harder and it was all down the way the screen filled my vision and the punch of the sound track. Despite in-home cinema set-ups, you just can’t get at home unless you live in a large industrial unit sized home. The analogue special effects held up surprisingly well and the plot was just as taunt as I remembered it. There was less people in the cinema than for the screening than for The Crow.

As I write this, I have just watched episode one of the latest series of Slow Horses. It has gotten off to the high standard set by the previous series and book. Time to put on my Roddy Ho t-shirt again.

Useful tools.

Table Capture

If you’ve ever tried to cut and paste a table and data from a website into an spreadsheet and then spent the rest of the afternoon parsing it in cell-by-cell you will appreciate the benefit of this browser extension.

Humaniser for GPT created content

If you’re reading this, chances are that you’ve used services like Claude, ChatGPT or Gemini as a starting point for copy, or to summarise documents. UndetectableGPT looks at providing alternatives to ‘tell-tale’ phraseology in generative AI copy.

Data analysis

Groupt will take a CSV file and categorise the data including visualisation, so you only have to focus on wrapping a narrative around it to fit into the wider storytelling of your presentation.

The sales pitch.

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

More on what I have done here.

The End.

Ok this is the end of my September 2024 newsletter, I hope to see you all back here again in a month. Be excellent to each other and onward into October and crispness of a bright autumn morning!

Don’t forget to share, comment and subscribe!

Let me know if you have any recommendations to be featured in forthcoming issues.
September 26, 2024
Mooncakes + more things
Mooncakes

Mooncakes were a big part of my time in Hong Kong and Shenzhen. This year, mid-September marked mid-autumn festival across Asia or known as Chuseok in Korea. It is similar to harvest festivals that happen elsewhere in the world.

It is celebrated in Chinese communities with mooncakes. Mooncakes traditionally have been made of fat filled pastry cases and lids filled with red bean or lotus seed paste and a salted dried egg yolk.

Mooncakes are moulded and have auspicious messages or symbols embossed on the top, like the double happiness ideogram which also appears on new year decorations and at weddings.

In the past mooncakes have been used to make political statements in Hong Kong where they were embossed with messages against the Fugitive Offenders and Mutual Legal Assistance in Criminal Matters Legislation (Amendment) Bill 2019. This mirrored mooncake history, where concealed messages were alleged to have been used to ferment rebellion against Mongolian rule in China centuries ago.

China saw a halving of mooncakes sold this year, compared to last year. This is a mix of fast-moving events like the state of consumer spending and longer term factors including gifting culture and attitudes to health and fitness.

The economy

The consumer economy seems to be doing worse than industrial output. Youth unemployment is still an issue.

Gifting culture

China saw a crackdown on premium priced mooncakes as part of a government move against ‘excessive consumption‘ driven by societal excess and ‘money worship’. This overall movement has dampened luxury sales. The Chinese government stopped officials buying mooncakes a decade ago as part of a crackdown on corruption.

Some consumers just aren’t into them

They were as divisive as Christmas cake is in Irish and British households. Brands like Haagen-Daz and Starbucks have looked to reinvent mooncakes into something more palatable.

Health and fitness

Health and fitness has been steadily growing as a trend in China. A number of reasons have been at play including changing beauty standards. Chinese women are still going to favour slimness over muscle, but home workouts and running have been increasing in popularity. The fitness industry has been growing and the Chinese government has also tried to foster interest in winter sports. So there would be a good reason to avoid ruining all the hard work that you put in by eating mooncakes.

Business

Nike CEO John Donahoe to Step Down | BoF

Economics

Why Do Workers Dislike Inflation? Wage Erosion and Conflict Costs* by Joao Guerreiro, Jonathon Hazell, Chen Lian and Christina Patterson – workers must take costly actions (“conflict”) to have nominal wages catch up with inflation, meaning there are welfare costs even if real wages do not fall as inflation rises. We study a menu-cost style model, where workers choose whether to engage in conflict with employers to secure a wage increase. We show that, following a rise in inflation, wage catchup resulting from more frequent conflict does not raise welfare. Instead, the impact of inflation on worker welfare is determined by what we term “wage erosion”—how inflation would lower real wages if workers’ conflict decisions did not respond to inflation. As a result, measuring welfare using observed wage growth understates the costs of inflation. We conduct a survey showing that workers are willing to sacrifice 1.75% of their wages to avoid conflict. Calibrating the model to the survey data, the aggregate costs of inflation incorporating conflict more than double the costs of inflation via falling real wages alone

FMCG

Unilever ends up as a punching bag for Greenpeace and having their purpose blown up. As a campaign idea, the public celebration by the Dove brand team of the 20th anniversary of Dove’s real beauty positioning and creative left themselves open to this. Greenpeace used a skilful reframing in this creative.

The reason why the developing world seems to be disproportionately affected by plastic waste highlighted is for a number of reasons:
- A lot of and paper and plastic recycling is shipped abroad. It used to go to China, but they declined to accept waste to recycle from 2018 onwards. So this waste went to other markets.
- Developing markets have single portion packaging so that FMCG companies can distribute via neighbourhood shops and sell the product for the price a consumer can afford.
- Plastic is easier to colour, manufacture, package and transport than glass, metal or coated paper. Biodegradable or effective post-use supply chains are well behind where they should be. And even if you were open to recycling, there may be brand issues.
Innovation

Chinese scientists claim they can use Starlink satellites to detect stealth aircraft | BGR

Japan

AI will help Sony expand Japanese anime’s growing fan base | FT – but would also help competitors out-produce Sony. Expect a Chinese anime avalanche.

Marketing

Campbell’s drops the ‘soup’: what the evidence says about adapting brand fundamentals | WARC

Media

OpenAI Messed With the Wrong Mega-Popular Parenting Forum | WIRED

Retail media frenzy muddies negotiations with brands, who agency execs say must spend or ‘suffer the consequences’ – Digiday and Retail media networks put the squeeze on brands | WARC – Spending on RMNs could be seen as part of normal partnership agreements between brands and retailers that have traditionally included marketing commitments. That shades into a grey area if retailers become focused primarily on growing their ad business, but those same retailers can’t expect brands to spend more unless they can demonstrate results. At the same time, brands have their wider media mix to consider.

In context
- The pairing of advertisers with consumers close to the point of purchase via rich, first-party data is leading to better ROI relative to other channels for some advertisers and is cited as a key driver of increasing retail media investment.
- Retail media is growing in double digits every year; it currently accounts for around 14% of global ad spend and is projected to account for 22.7% of online advertising by 2026.
- Retail media is no longer a ‘medium’ in the conventional sense but is instead evolving into an infrastructure underpinning the entire digital advertising ecosystem.
Content Creators in the Adult Industry Want a Say in AI Rules | WIRED

Security

JLR’s letter: what Land Rover’s doing to stop your older car getting nicked | CAR Magazine – update on JLR’s security crisis

Software

A brief history of QuickTime – The Eclectic Light Company

Technology

NTT Data builds a mainframe cloud for Banks • The Register – mainframes are still amazing for large scale batch processing
September 25, 2024
Omakase and luxury futures
Omakase and luxury seem made for each other. Think about the core elements of omakase:
- An expert provides a personalised experience that is about quality, ceremony and theatre.
- The expert decides what you will have and prepares it for you. You are there from selection to the provision of the item.
- The ingredients are of fine quality (and often locally sourced).
Marc Veraart

As a trend omakase has expanded geographically with Japanese cuisine. But it has also expanded in terms of categories covered.

Koreans have taken omakase and pushed it into other areas:
- Coffee
- Dessert tasting
- Barbecue restaurants which are normally a local neighbourhood staple
- Wine and champagne-tasting
So how can omakase and luxury come together in the future?

In order to understand how omakase and luxury in the future it is worthwhile paying a good deal of attention to the pressures that the luxury industry is currently under.

Luxury is under pressure

Undoing the mistakes of the past

Luxury has expanded to be the size of industry it currently is due to ‘massification’ by most of the maisons. The exceptions to this would be the likes of Hermés.

Massification

Massification means lowering quality, using globalisation in the supply chain as well as the retail network to manufacture products cheaper. Massification occurred over a three decade period and was covered extensively by former fashion editor Dana Thomas in her book Deluxe.

Around about 2014, Gucci led the way for luxury brands to do streetwear, leading to a more accessible luxury product. Louis Vuitton did the archetypical collection with its 2017 Supreme collaboration.

Contrary to what most people believe luxury is aimed at the middle classes rather than the wealthy. But targeting middle class customers rather than the wealthy poses a number of problems:
- Increased capital outlay due to the scale required.
- Scale brings challenges in terms of supply chain management and consistency of customer experience. Greater control can be obtained by vertical integration within the supply chain and owning the retail channels. But all of this requires greater expertise and management oversight.
- Increased economic sensitivity to shocks such as interest rate and cost of living rises.
- Increased risk of devalued stock during an economic downturn. Gucci earnings were down 20 percent alone in Q1, 2024.
Bigger might not always be better over a longer view.

Secondary markets

Secondary markets have been both a boon and a bane for the luxury sector. At one time pre-owned was seen as an ‘entry-level’ product. I bought my first nice watch secondhand once it had depreciated. It was often said that the best entry-level Porsche was a secondhand one.

But gone are the days when you may buy a pre-owned Louis Vuitton purse on a second hand market stall in Paris. Now that will be on Vinted, Vestaire or some other platform.

Secondary market inflated pricing affected luxury businesses in a number of ways
- You would be interviewed to go on the waiting list for a Porsche or a Rolex.
- Authorised dealers became order takers and dealer customer service slipped.
- Your purchasing history would acquire you the rights to buy a Hermés bag over time.
Luxury groups extended their businesses into the pre-owned market. LVMH owned part of secondhand watch retailer Hodinkee. Richemont owned Watchfinder and Yoox-Net-a-Porter who sold a mix of new lines and vintage preowned items. Rolex rolled out its ‘CPO’ programme selling inspected pre-owned Rolex watches through its authorised dealer network.

Things looked really good for the luxury industry, they managed to managed to scale, to a point that LVMH is one of the largest companies in the world:
- Massification through global manufacturing supply chains.
- Keeping margins high, while letting quality go low.
- Address a rising middle class in China, Korea, Japan, the Gulf countries and Russia to counteract the hollowing out of the middle class in the US and western Europe.
- Maximising margins through controlling costs via vertical integration up and down the supply chain, from raw materials to retail.
Market change

A few things underpinned the craziness of COVID:
- Money was put in consumer pockets, for which they had few outlets.
- Supply chains were disrupted as factories closed down or pivoted to manufacturing essential products. For instances Perfums Christian Dior made hand sanitiser for hospitals for free.
A Forrester effect (also known as a bull whip effect) resulted, driving inflation that the world’s economies are coming to terms with now. Secondary effects of this event were the increased interest rates used to reduce demand driven inflation.

Other secondary effects include increased crime levels. London has gone from a luxury shoppers paradise, to having a global reputation amongst elites of being plagued by violent watch and bag robberies. COVID-19 isn’t the only driver of this crime wave, but is a contributing factor.

It has also had a catalysing effect on reducing globalisation to increase national resilience.

Consumers know that a good deal of luxury goods don’t match up with the European artisan heritage story that brands try to sell them. Experts like William Lasry has made public which brands make what kind of products where. Luxury brands often make in places like China due to capability and scale – similar reasons to why Apple products are designed in California and assembled in China. (Seriously, check out William Lasry’s channels, I love some of his visits to high-end Japanese manufacturers).

China

China has been a key focus for luxury brand, but it has changed in a number of different ways:
- Chinese consumers have changed in their confidence of native brands and have a lower opinion of many foreign brands. This is partly down to a change in attitudes called guo chao. Guo chao can be traced back to the increased confidence in the run up to the 2008 olympics in Beijing. This was partly fuelled by a series of essays published in 1996 by the likes of academic Wang Xiaodong called China Can Say Now which advocated a modern robust form of Chinese nationalism, which was in stark contrast to the Deng-era vision of globalisation and biding one’s time. In the April before the olympics Chinese consumers boycotted French supermarket brand Carrefour. Over time the negativity of these boycotts have become more-and-more performative and extra-territorial in nature. The current Xi administration has seen fit to weaponise this nationalist sentiment by directing (wrangling is a more accurate term, like cowboys with a cattle train in the Old West) public opinion to further its own ends. A more positive aspect of it has been a more open market for domestic ateliers and brands than had been seen previously. Since before 2019, there have been Chinese efforts to build a rival luxury groups to LVMH and Kering and this fits in with Xi’s distaste for irrational worship of the west.
- Xi-era growth. China under Xi Jinping faces multiple challenges around growth. The population is aging and in decline which has implications for declining consumption. Secondly economic growth has slowed compared to the double digit annual economic growth of the Deng, Jiang and Hu administrations. Foreign direct investment in China has declined for a mix of reasons including unattractive Chinese government policies, decline in China’s country brand and long term economic growth forecasts.
Regulatory change

I know what you’re thinking ok, this is very well Ged, but what does it have to do with omakase and luxury futures? Give me a little bit more time and all will be revealed.

While China is an economic superpower with a desire to export its world view and the United States is a hard and soft power super power; the European Union’s super power is legislative in nature.

European regulation drove the globalisation of the GSM mobile telephony standards during the 1990s and 2000s. They have also driven increasing internet privacy standards on web services, much to the chagrin of Alphabet, Meta and Twitter.

Now they are driving environmental standards across a range of areas including:
- A carbon tax to take into account the use of fossil fuels in extraction of raw materials, transportation, energy as an input to manufacturing and processing materials.
- Product passports from raw materials to product end-of-life encouraging a circular economy and sustainable manufacturing.
This means that the luxury sector has new restrictions on how it operates in the future.

In summary:
- We’ve likely reached peak massification due to economic and trade changes.
- Market share in China looks uncertain due to changes in consumer sentiment and tastes, meaning, a more local approach might be required or a strategic withdrawal.
- Secondary markets show that consumers are open to ownership beyond pristine new products.
- Product passports and European legislation means re-examining the whole supply chain and the data to better control it through an entire product life.
Finally, omakase and luxury futures!

Omakase and luxury look like a happy meeting in the future. Think about the tenets of omakase.
- An expert provides a personalised experience that is about quality, ceremony and theatre.
- The expert decides what you will have and prepares it for you. You are there from selection to the provision of the item.
- The ingredients are of fine quality (and often locally sourced).
Going back to go forward.

The future of luxury is about looking back. Tailors who suited generations of families and made alterations to Grandfather’s suit that the son is now wearing. The shirt maker replacing the collars and cuffs. The shoe-maker who refurbishes your shoes and has a set of lasts with your name on, for when he has to make a new set. Getting measured, having your foot cast for a last or getting your watch could be memorable events once again. So there this a precedence for expertise and service levels. But it implies a retail experience that will change dramatically.

New techniques and questions.

Previously with the exception of measuring sessions, these processes were largely concealed from the consumer and were difficult to scale. So it’s worthwhile thinking about how luxury’s omakase future could be extended with modern technology? We have some experiments that might give us some ideas. First up, L’Oreal has showcased bespoke make-up manufacture for a while.

How could high-end perfume makers adapt for products beyond make-up? Improved analysis equipment from the likes of Oxford Nanopore could facilitate individually formulated fragrance products based on skin chemistry.

Adidas experimented with its Speedfactory concept that blended the retail and shoe assembly together.

Technologically there is a lot of promising ideas. Adidas have worked with up-cycled plastics retrieved from the debris brought together by an ocean gyre made into 3d printed soles and fibres. (Look for the Parley label, who Adidas partnered with on this.)

How can additive or automated manufacturing and other processes feel luxe? In what way could they add to the theatre?

This hybridisation of retail and manufacturing changes the nature of both offline and online retail completely. Would even the largest concession in Selfridges or a shopping mall be big enough, or would fashion houses need a single purpose brand experience?

Given that there is likely to be a bit more time between manufacture and presentation of the product than there would be in a sashimi restaurant, what else would go into the maison experience? LVMH is already investing in hotels and resorts like Cheval Blanc which gives it a better understanding of more areas in luxury experience and service.

Localisation would likely to be needed to handle omakase and luxury due to culture and the need for local materials. This might include new materials, such as fungus-derived leather. Of course, this might have negative implications for luxury house supply chains, whether it’s Louis Vuitton’s iconic plastic coated leather, or the Hermés crocodile farm.

Which means that product line-ups could no longer be global in nature. So luxury companies may revisit that the creative process looks like. Should there be a single global vision anymore? Luxury maisons instincts would be to say yes, but could this be an opportunity to own local ateliers in markets like China or the US?
- Will there be more local brands instead?
- What will a maison’s heritage mean in the future? A luxury maison is about what remains the same as much as what changes. What will happen to long-standing motifs?
- Will there be a greater opportunity for more auteurs who are closer to the customers?
- How to bridge the tension in terms of choosing for the customer and creativity as well as quality?
We’re talking a very different profile of creative in terms of thinking, attitudes and skills compared to the present.

Service, repair and reuse could learn a lot lessons from traditional tailors and the service networks of watchmakers like Rolex or luggage maker Rimowa.

I could not think of a more exciting or scary time to be setting the brand direction for a luxury maison, let alone the overall direction or the likes of LVMH. But by wrapping local materials, expertise, ritual and a bit of theatre the future could look like a fusion of omakase and luxury.

More information
April 30, 2024
Complaint resolution + more things
Complaint resolution

My mind cast back to one of the first modules I studied at college. There was a lecture on the role of complaint resolution as part of customer services. The idea was that effective complaint resolution engendered trust in a customer service function and was more likely to increase brand loyalty and recommendation to other people. In reality Ehrensberg-Bass Institute have explored this area in more depth and found that customer penetration is more important than customer loyalty.

US National Archives: Approaching Logan Airport. 05/1973 by Michael Manheim

I suspect that the benefit in complaint resolution is more around a premium brand positioning rather than the business benefits of loyalty. This is an interesting frame to consider AirHelp’s global airline ranking. Unlike SkyTrax that focuses on experience, AirHelp weighs its ranking heavily on complaint resolution.

British Airways came 82nd out of 83 airlines assessed, which won’t be a surprise to anyone who has flown with them over the past four years.

Many airlines that would have a high SkyTrax service ranking, didn’t perform as well on complaint resolution.

So there wasn’t a clear correlation between experience resolving lots of customer complaints or a highly evolved service offering.

Beauty

Asia’s beauty triangle and why L’Oréal wants to harness it to ‘uncover the future’ | Cosmectics Design Asia – focus on the ‘beauty triangle of China, Japan and Korea for innovation

Consumer behaviour

The Strength of Weak Ties by Mark S. Granovetter – written back in 1973 and still just as valid.

Energy

Emerging car brands scrutinised by Bloomberg and Grant Thornton | Manufacturer – “Chinese brands are dominating the scene with good products, big screens, and impressive interfaces.” However, the challenge arises when considering pricing, as Chinese EVs like the XPeng’s G9 SUV was 72,000 euros competing against the likes of BMW and Mercedes. So they’re going to find it very, difficult and it’s going to come down to price.” Dean pointed out MG’s success in the UK market was achieved by hitting exactly the right sweet spot in terms of pricing. The MG ZS, the second-best-selling battery electric vehicle in the UK, is priced at an average of £31,000, making it compelling in terms of competitive pricing especially in a country where consumers are not fiercely loyal to specific brands. – interesting reading. The way for Chinese vendors to win would be to have Chinese incentivised lease financing, particularly in a time of higher interest rates a la Huawei in the telecoms markets.

Honda will cease production of its first EV e car after dismal sales | The Asahi Shimbun: Breaking News, Japan News and Analysis

Ethics

Bee Respect: Guerlain – interesting full-featured sustainability policy

Staff rebel at consultancy behind VW review of Xinjiang rights abuse | FT – Volkswagen using sketchy data practices, haven’t we heard this somewhere before?

Finance

China Turns the Tables on Wall Street – WSJ – I am not surprised, just wait until they see how Chinese overseas debt is handled let alone 3rd world sovereign debt

FMCG

China overtakes US as branded coffee shop capital of the world | Starbucks | The Guardian

Health

American men are dying younger. – by Richard V Reeves – I just don’t think this can be addressed in the current climate of othering and privilege. It would be like trying to hold a meaningful discussion on immigration a few decades ago.

How Taiwan’s disease detectives are keeping tabs on China | Telegraph Online

Hong Kong

Xi in Nanning; Shanghai and Beijing real estate tweaks; More Hong Kong bounties; Sim Love | Sinocism – the Hong Kong puts bounty on the head of US citizen who has criticised the Hong Kong government in the US. They are all ethic Chinese. So China and the Hong Kong government think that ethnic Chinese wherever they are should be loyal to their respective administrations – in essence their face is their passport. Not even Israel does something similar with the the world’s Jewish community, or Ireland with our diaspora.

Innovation

Quantum Breakthrough: Caltech Scientists Unveil New Way To Erase Quantum Computer Errors – Researchers from Caltech have developed a quantum eraser to correct “erasure” errors in quantum computing systems. This technique, which involves manipulating alkaline-earth neutral atoms in laser light “tweezers,” allows for the detection and correction of errors through fluorescence. The innovation leads to a tenfold improvement in entanglement rates in Rydberg neutral atom systems, representing a crucial step forward in making quantum computers more reliable and scalable.

Luxury

LVMH takes VivaTech 2023 visitors on a journey in its Dream Box and LVMH Court – LVMH

Suntory to double prices for premium whiskies in April | The Asahi Shimbun: Breaking News, Japan News and Analysis

South Korea’s Coupang to acquire online luxury retailer Farfetch | FT

Marketing

The best of the Jay Chiat Awards: Campaigns that broke habits and reframed perceptions | WARC

Panadol chief marketer: How healthcare is ‘hotting up’, consolidating agency partners and why purpose can go ‘too far | Campaign Asia – rational for not spreading agency spend ‘too thin’ which explains holding company partnerships

Media

What the Epic vs Google case means for content | Ian Betteridge – well worth reading

Online

Meta forced to apologise to Qatari billionaire over crypto scams | FT

TikTok car confessionals are the new YouTube bedroom vlogs | TechCrunch – a combination of factors going on here. Here’s my top hypotheses:
- It is supposed to look ‘off-the-cuff’. I guess the keyword in that sentence is supposed.
- It feels less structured and less staged than the YouTube bedroom trope.
- Its a half-way house between being confident enough to film in public and filming in your bedroom.
- Many cars have smartphone stands, or have owners who have installed them.
- Cars offer some benefits in terms of acoustics. This would be particularly important if the content creator lives in a multiple occupancy household.
WordPress founder Matt Mullenweg asked people to blog as a way of celebrating his 40th birthday.

Retailing

Brands are blaming Temu & Shein for poor business performance | Modern Retail – you probably have a problem with marketing and communicating value if this is the case.

Technology

What leading Apple-in-the-enterprise execs expect in ’24 | Computerworld

GV Co-Leads Funding Round for Photonic Computing Startup Lightmatter – Bloomberg

Web of no web

How Meta’s New Face Camera Heralds a New Age of Surveillance – The New York Times

Wireless

6G: network operators want profitable returns on 5G first | FT
February 8, 2024
Loneliness
This post on loneliness came about from an insight journey I took for a prospective project aimed at generation Z. Don’t get me started on defining an audience by generation, or I will go off-topic and not be back for a while while I rant about how life stages are a superior lens. But we digress. So the approach I took was looking at the problems and challenges faced by the target cohort. From reading academic papers, I came across things like anxiety, climate anxiety and loneliness. Loneliness stuck out as interesting, as it was something that small community moments could be fostered around and a brand would help in an authentic low key way without being parasitic.

What is loneliness?

First of all it makes sense to define what loneliness actually is?

loneliness, distressing experience that occurs when a person’s social relationships are perceived by that person to be less in quantity, and especially in quality, than desired. The experience of loneliness is highly subjective; an individual can be alone without feeling lonely and can feel lonely even when with other people. Psychologists generally consider loneliness to be a stable trait, meaning that individuals have different set-points for feeling loneliness, and they fluctuate around these set-points depending on the circumstances in their lives.
Encyclopedia Britannica Online

The UK government commissioned a report in 2019 by Simetrica Jacobs that quantified the economic cost of loneliness for businesses in terms of ill health and lost work productivity as £9,900 per year, per person. Commentary in The Lancet associated loneliness with a 26 percent increase in premature mortality.

Loneliness hits youth harder

In my initial research I found that we had high levels of loneliness and young adults experienced this in a more acute way.

83% of generation-z survey respondents said that they experience loneliness, compared to 68% of the UK population as a whole. I found this fascinating as if you look at the TGI data around the UK overall group cohesion score, you tend to get much smaller variances from the mean.

Nor is loneliness just a UK phenomenon. Studies have indicated that it is prevalent from multiple countries with different levels of cultural commonalities: from the US, Israel, Japan and the Philippines.

This seems to go hand-in-hand with other conditions such as anxiety and depression. There are plenty of other causes for anxiety and depression: but loneliness certainly feeds into their severity. This can be seen by the increasing incidence of mental health on US student campuses over the years according to research by The Health Minds Network.

Some experts hypothesise that the normalisation and embedding of therapy in modern culture and the popular lexicon may well be exasperating the loneliness problem, rather than helping.

The idea of being alone, but not feeling lonely has become a rich vein of content inspiration for influencers.

Loneliness is a longitudinal trend

COVID-19 isolation brought ideas of loneliness to the forefront, but it has been a rising issue for a long time.

Going back over a century of data from 1919 – 2019, we can see that mentions of loneliness had a peak during the great depression. It then dropped through the second world war and started to pick up again. There was a rapid increase from the late 1960s through to the mid-1980s and then an notable increase from the mid-2000s through to 2019 – which is the latest year that we currently have data for.

There seems to be a correlation between mentions of loneliness and times of economic hardship. One also has to remember that during the second world war, publications were widely censored. Printing paper was in limited supply due to the war effort.

The BBC conducted conducted research with the Wellcome Foundation in 2018 with 55,000 respondents. At the time it was the largest survey that had been conducted on the subject. The research found that a higher number of younger survey respondents felt lonely and that having online-only friends correlated with higher degrees of lonely feelings.

At the time, the BBC came up with a few hypotheses about the possible high incidence of loneliness among 16 – 24 year olds:

They have less experience of regulating their emotions, so everything is felt more intensely

This might be only the first or second time they’ve felt lonely in their lives and they haven’t had the chance to learn that loneliness often passes

16-24 is an age when identity is changing. Young people are working out how they relate to others and where they stand in society. That process is naturally isolating to some extent, so feeling lonely during this time may be quite normal
BBC Anatomy of Loneliness

The view that this might be a phase was supported by qualitative responses of older respondents who said that young adulthood was the time when they had felt loneliest. Loneliness might be something that we can’t blame completely on social media.

Social capital

Public policy academic Robert D Puttnam warned about the decline in social capital across American society back in 2000 with his book Bowling Alone. Social capital is the reward from communal activity and sharing. Shrinking social capital impacts both civic and personal health according Puttnam.

Based on survey data outlining American social activities over the decades, Puttnam outlined how the population had become more disconnected from family, friends, neighbours, and social structures. This makes sense given the pivot that western society went through during the 1960s and 1970s towards existentialism, or even go further back as far as the post war period where Benjamin Spock’s The Common Sense Book of Baby and Child Care realigned parenting around the child as an individual. For various factors including long work days, both men and women working, increasing personal distractions meant that there was less participation with local organisations like:
- The PTA (parent teacher association involved with a school).
- Church (going to services, community bonding and related social work activities).
- Clubs.
- Political party related grassroots activities.
- Organised sports such as bowling leagues.
In the revised edition of Bowling Alone, Puttnam explored the omnipresent fabric of social media and the internet which represented an opportunity for new types of social connections, as well as the threat of even higher levels of alienation and isolation.

Loneliness solutions

The World Health Organisation (WHO) considers social isolation / loneliness as one of the key social determinators of health. Over this decade, they have been focusing on loneliness in aging populations. Society has already been evolving various point solutions to help combat loneliness with varying degrees of success. There have been some attempts to use healthcare’s tool de jour -behavioural economics.

Mukbang

Mukbang (or meokbang) is a type of online streaming programming that started in Korea. It crossed the cultural barrier to western audiences where it lost its meaning as it became a platform for eating feats or stunts. In its original form, it addressed the loneliness felt by many Korean single-person households.

Korean cooking is designed to be shared. You have lots of side dishes, the best known of which is kimchi.

Mukbang streamers ate and interacted with people watching their stream, giving the impression of a virtual dinner table. The watchers may be only eating an instant ramen, a convenience store meal, take-out pizza or a Cafe de Paris baguette. But they had a parasocial experience more akin to when they lived with family members.

Elder care

WHO is most focused on the impact that loneliness has on the elderly in society. Governments and the health sector have looked to address this in a systematic way. In Hong Kong, there is a disco to bring elderly together and visits from therapy dogs are two of the ways local government have looked to stave off the worst effects of isolation.

PARO by Shoko Muraguchi

Japan pioneered the use of robotics with the PARO therapeutic robot. It looks like a baby seal and provides a similar experience to a therapy lap dog. Sony’s Aibo has been adapted for a similar role.

Inclusivity

In Ireland, the Roman Catholic church has been weakened as the organisation at the centre of social fabric due modern Ireland gradually becoming more secular.

Clips from the Late Late Show hosted by Gay Byrne from the 1962 to 1999 showing how Irish society changed. Byrne was both a chronicle of change and a catalyst for it because of the discussions his show facilitated.

This was then exasperated by a series of scandals coming to light.

The GAA (Gaelic Athletic Association) is Ireland’s largest sporting organisation and is made up of local amateur clubs playing indigenous Irish sports including camogie, hurling, Gaelic football, handball and rounders. The local GAA (Gaelic Athletics Association) clubs have gone some way to pick up the slack with the GAA Social Initative.

The GAA Social Initiative continues to grow in its capacity to enrich the lives of all older members of our communities while specifically reaching out to isolated older men across the 32 counties.

From its genesis in the observations of then President Mary McAleese of a dearth of older men at events she attended across the island of Ireland, it has grown from a small pilot project involving GAA clubs across four counties to one of the Association’s flagship community outreach projects.
GAA Online

More information

More than two thirds of adults in the UK experience loneliness | Eden Project Communities

The West’s Struggle for Mental Health | WSJ Online

Generation Z in Japan: Raised in Anxiety | Emerald Insight

The Healthy Minds Network School Mental Health Research Symposium

Loneliness at epidemic levels in America – PMC

Esther Perel Thinks All This Amateur Therapy-Speak Is Just Making Us Lonelier | Vanity Fair

Americans Are A Lonely Lot, And Young People Bear The Heaviest Burden | Rhitu Chatterjee

New York State Buys Robots for Lonely Elders | Futurism

The AI Girlfriend Seducing China’s Lonely Men

As Hong Kong’s elderly face loneliness epidemic, carers hope dogs and disco will keep post-Covid isolation at bay – Hong Kong Free Press HKFP

No More Loneliness: The rise of livestreaming in East Asia – YouTube

An investigation into the relationship between climate change anxiety and mental health among Gen Z Filipinos | SpringerLink

How Amazon, Apple, and Facebook Made America Lonelier Than Ever

Why loneliness fuels populism | Financial Times

PARO therapeutic robot

Assistive social robots in elderly care: a review. Joost Broekens, Marcel Heerink, and Henk Rosendal (PDF)

Man who married a fictional character, he’d like you to hear him out | The New York Times

Man Who Married Hatsune Miku Hologram Says the Relationship Has Gone Cold | CBR

The Anatomy of Loneliness research | BBC

Firewater | No mercy, no malice – exploration of changing consumption habits, risk profiles and declining mental health in a safer environment
January 16, 2024