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.
Unilever Sets Up U.K.-Netherlands Clash in Search for New Home – Bloomberg – It is unsurprising expect Shell to look at similar moves, given its dual listing in London and The Hague. Rotterdam makes more sense as from a real estate point of view the London headquarters at 1 Victoria Embankment is too cramped, the Rotterdam headquarters . From the economics Rotterdam also makes more sense due to Brexit. The only thing that can stop the move is London based institutional investors
Unilever to restructure and slash ad spend | Marketing Interactive – I suspect that this is misreading the picture. Unilever had been rolling out ZBB when I was there and were looking at the spreads business for even longer. I see this more in terms of the lens of the London – Rotterdam discussion
Samsung’s Android Replacement Is a Hacker’s Dream – Motherboard – But most of the vulnerabilities he found were actually in new code written specifically for Tizen within the last two years. Many of them are the kind of mistakes programmers were making twenty years ago, indicating that Samsung lacks basic code development and review practices to prevent and catch such flaws. – interesting that the faults aren’t in the Nokia and Intel originated code that Tizen builds on top of. This hits after the Note 7 debacle
Apple Held Back Most Advanced Wireless Tech, Says Qualcomm – Tech Trader Daily – Apple has more influence in many countries than Qualcomm? I’m calling bullshit on that statement at least. Qualcomm meddles in lots of regulatory things including mobile carrier consolidation in markets around the world, they have a strong regulatory team
Huawei mystery memo (and phone strategy) confirmed • The Register – not terribly surprised by this, guessing turning back on brand advertising and carrier subsidies with a focus on the SIM only market? The ad and marketing spend was very uncharacteristic of the brand. The problem is that the spend is needed in a mature consumer market category. More related content here.
Exclusive: Japan to vet bidders in Toshiba chip sale for national security risks – sources | Reuters – I could understand that Japan probably doesn’t want China dicking them around on the Toshiba chip sale. China would happy interfere with the Toshiba chip sale, because of the pathological hatred Chinese authoritarian nationalism holds for Japan. Also the Toshiba chip sale would aid in ‘Made in China 2025’. China could try and mess up the Toshiba chip sale like they have been doing with the Lotte chaebol of Korea and have done in the past with rare earth metals
BBC Radio 4 – PM, British Airways to cut legroom on planes – WTF – part of marketing is clear differentiation from budge airline experiences beyond the price premium that you pay. I guess IAG airline British Airways doesn’t buy into that concept. So glad I got rid of my BA loyalty card years ago.
Unwind by Sync Project – look at the site on your phone, it accesses your heart rate presumably via the touch sensor??? and plays music to help you unwind based on the data
WikiLeaks Releases CIA Hacking Tools – Schneier on Security – this won’t end well. Next level hacking has been democratised. The toolkits will provide a learning experience for other states and building blocks for criminal hackers. More on security here.
The $143bn flop: How Warren Buffett and 3G lost Unilever | FT – Back in London on Saturday, as [Unilever CEO] Mr Polman tapped into his network of contacts, he was informed that Finsbury was working with Kraft Heinz on PR. Within seconds, Mr Polman blasted off an email to Sir Martin Sorrell, the founder and chief executive of WPP, the advertising company that counts Unilever as one of its most important clients. Finsbury, which is majority owned by WPP, was removed from the Kraft Heinz side by the end of the day. – guessing Kraft Heinz isn’t worth that much for WPP, also think that you can take Colgate Palmolive off the table as well since they are a big WPP customer
Apple Severed Ties with Server Supplier After Security Concern — The Information – I imagine that this is what being a target of the NSA’s tailored access programme would look like. There are a number of other state actors with similar capabilities. SuperMicro is interesting because it assembles servers outside China – instead it has factories in San Jose, The Netherlands and Taiwan
I have managed to catch up on a lot of reading over the Lunar New Year festival. Joe Studwell’s How Asia Works is fascinating reading. It talks about how Korea, Japan and China have grown while their counterparts haven’t. Studwell highlights a number of factors that contribute to economic growth:
With an agrian economy, a market garden approach to agriculture rather than farming at scale delivers the best results. But only if rent seeking interests are removed through effective agricultural reform
Industry requires total mastery of technology – which is the reason why low grade heavy industry is the starting point
Exports planned into industrial development from the beginning and a continued relentless focus on exports is required
Governments are best at keeping businesses focused on total technology mastery, raising cheap finance and weeding out failures that might be a resource suck
Studwell critiques how different countries throughout Asia have managed to process in this manner including both the strengths and the weaknesses of their respective approaches.
It was fascinating to read how Taiwan managed to succeed in spite of nationalised industries and the challenges in China’s agricultural model. How General Park ‘motivated’ Korean chaebols and the tragedy of development in Thailand, Malaysia and the Philippines. I can highly recommend How Asia Works.
China’s Crony Capitalism by Minxin Pei explained the mechanism of how corrupt officials, state enterprise employees and businesspeople managed to bilk the Chinese government and people of vast amounts of money. Much of the challenge is structural. China has a federalised government with power lying at provincial, city and county level. Pei is hawkish on the country’s prospects.
For an outside observer Pei’s research into the mechanisms, one can appreciate the challenge that the central government faces in combatting corruption and bad behaviour. President Xi’s ‘tigers and flies’ campaign to root out the worst corruption in the party and business is part of the solution; but according to Pei there is also careful structural reform required. This will only be possible through a massive aggregation of power towards the centre. More related content here.
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.
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 baked into streetwear’s DNA.
(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.
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…
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 luxury related posts here.
