Over the space of 20 years, luxury changed enormously. The Japanese had been a set of new consumers for luxury, but in terms of numbers they hadn’t eclipsed the US as the biggest market for luxury.
China’s ascent into the WTO (World Trade Organisation) made a lot of business people and politicians a lot richer. China challenged the US in terms of luxury market size. On their rise, Chinese consumers changed a lot in their sophistication as they educated themselves on luxury consumption.
These new consumers picked up new traits such as wine drinking. This also meant that luxury goods became new asset classes as Chinese money looked to acquire only the best. Chinese culture in turn impacted luxury design. Chinese new year became more important than Christmas.
Then there was the second generation money. Young rather than old consumers. Consumers who were looking for something less formal, either because they didn’t wear anything but streetwear or they worked in the creative classes rather than the traditional professions and high finance.
The industry had traditionally avoided rap artists and R&B singers, now Jay Z and Beyonce are the face of Tiffanys and Fendi had collaborated with Rihanna.
They no longer wanted to have to wear a jacket and tie to have afternoon tea at the Mandarin. They took an eclectic look more attuned to the Buffalo Collective than Vogue Italia.
You had hybridisation with the street to create a new category of luxe streetwear in a way that also owes a debt to football casual terrace wear and the pain.
Now you have Zegna badge engineering approach shoes from alpine brand La Sportiva and Prada has done a similar thing with adidas’ iconic Stan Smith tennis shoes. Balenciaga with their Speed Sock looks like a mix between Nike’s flyknit football boots and the Nike Footscape sole.
Luxury has traditionally reflected status. Goods of a superior nature that the ‘wrong sort’ of people would never be able to afford. Luxury then became a symbol that you’d made it. In Asian markets, particularly China, luxury became a tool. People gifted luxury products to make relationships work better. It also signified that you are the kind of successful business person that partners could trust. You started to see factory managers with Gucci man bags and premium golfwear to signal their success. Then when the scions of these business people and figures in authority were adults, luxury has become about premium self expression.
SITA | SITA statement about security incident – this gave limited and basic information – specifically your name, membership number and tier, seating preferences and a code corresponding to your meal preferences. – according to Cathay Pacific. It looks like this attack on SITA was more about tracking the travel of persons of interest around the world; so more likely to be a state actor rather than commercial motives. China is known to use this kind of data to track and harass its enemies
Jack Ma personifies the contradiction of China’s ideology | Financial Times – interesting end to the article, with a question about whether Goldman Sachs, BlackRock et al will be able to convincingly align themselves “politically, intellectually and emotionally” with Xi Jingping? How will the west regard Communist party cells in their management decision structures?
Tymbals : The Agency of the Future – I was reading this by Nigel Scott. I suspect that he’ll be right. My main concern as a marketer is the piss-poor job that the martech stack players do, supporting brand building. The fundamental problem is they only view things from a performance marketing perspective because engineers, programme managers and even the company CMOs don’t get brand. These are the people that brought us growth hacking. Their model is a secondhand car lot salesman.
Why the Europeans Don’t Have a Russia Policy – Carnegie Europe – Carnegie Endowment for International Peace – the belief held by the older generation of German Social Democrats—and Christian Democrats—that Russia should not be isolated. This was the thinking behind Germany’s Ostpolitik, or Eastern policy, which was begun by the Social Democrats in the late 1960s. That policy was based not only on the idea of dialogue with Russia but also on the notion of Wandel durch Annäherung, or change through
Wave Goodbye, Hello MIPS as Chapter 11 Resolved | EE Times – still has a strategic focus on the RISC-based processor architectures. They are looking to support a mix of legacy MIPS technology and a new “standards-based 8th generation architecture,” based on the open source RISC-V processor standard
China and the UK test HSBC Bank divided loyalties in Hong Kong — Quartz – If HSBC Bank were to spin off its China operations, it wouldn’t be the first bank to reconfigure its ties due to a changed political situation. In the 1980s, the British banks Barclays and Standard Chartered pulled out of direct operations in South Africa amid global pressure against the apartheid regime. The bank’s actions “highlighted…the fact that financial institutions were not unassailable when faced with public pressure on ethical issues. HSBC Bank is betting that the screwing China will give it is still better than the west, more from the FT here: HSBC Bank shifts ‘heart of business’ to Asia in latest strategy revamp | Financial Times
Book Review: Rural Youth Key to China’s Human Capital Crisis – Caixin Global – Rural China is so systematically neglected that it has become nearly invisible not only to most outside observers but even to urban elites within China. But this “invisible” part of China will determine its economic future. Instead of sitting in an ivory tower advising Chinese officials what to do, the authors and their team at Stanford University’s Rural Education Action Program (REAP) have been helping China’s rural youth on the ground in practical and realistic ways
Exclusive: Scientists at top British universities worked with Chinese nuclear weapons researchers – Scientists at Britain’s leading universities – including Cambridge, Edinburgh and Manchester – have worked on a string of projects with researchers at China’s nuclear weapons research institution – it doesn’t necessarily mean that they were helping the Chinese build a new generation of warheads but its not a good look
Consumer behaviour
Cultural Differences May Affect The Outcome Of A Pandemic: New Research : Goats and Soda : NPR – Tight cultures tend to have had a lot of threat in their histories from Mother Nature, like disasters, famine and pathogen outbreaks, and non-natural threats such as invasions on their territory. And the idea is when you have a lot of collective threat you need strict rules. They help people coordinate and predict each other’s behavior. So, in a sense, you can think about it from an evolutionary perspective that following rules helps us to survive chaos and crisis
Notice, Shift, and Rewire: Starting the Journey to Dismantle White Supremacy | by Anna Madill | Feb, 2021 | B The Change – interesting read. What struck me is how much this goes against efficiency and effectiveness in terms of everything one would have been taught in business management, to focus on what I’d call internal quality. It is predicated on a sufficiently slow rate of environmental change / client demands in order to allow this to happen. It is an ideal work environment (and I don’t mean that in the terms that they define it) but in a more general sense. It goes against the grain of the observations of James Gleick in his work Faster
Signal has become a popular messaging clients among my contacts for privacy orientated messaging. I’ve shared this guide a number of times, so I thought I would share it here. More on Signal messaging here. I use Signal on my phone and my desktop computer, both of which are an integrated experience.
Innovation
FISCAL YEAR 2020 a great report by the UD Department of Defence – a U.S. business climate that has favored short-term shareholder earnings (versus long- term capital investment), deindustrialization, and an abstract, radical vision of “free trade,” without fair trade enforcement, have severely damaged America’s ability to arm itself today and in the future. Our national responses – off-shoring and out-sourcing – have been inadequate and ultimately self-defeating – punchy, but I don’t see much attention being paid to it (PDF)
Quad’ nations sign up for meta think-tank to advance ‘Techno-Democratic Statecraft’ • The Register – Universities and think tanks from Australia, the USA, Japan, and India have come together in a new group that together hopes to advance discussions on the intersection of information technology, regional security, and internet freedom. Dubbed the “Quad Tech Network”, the group is managed by the National Security College at The Australian National University, an organisation backed by Australia’s Department of Foreign Affairs and Trade.
China Blocks Clubhouse App After Brief Flowering of Debate – The New York Times – At times, the conversation went off the rails, as when one man who identified as Taiwanese chimed in to curse out mainland Chinese people, before quickly signing off. But for the most part, users said that the app’s use of moderators and real-time voice sharing promoted a civility and intimacy lacking on other popular social media platforms like Twitter and its Chinese equivalent, Weibo. – interesting given its reputation for racism and sexism
PRWeek poll: A third of PR businesses predict Brexit revenue hit | PR Week – “First, whereas previously the UK would always be the gateway for new entrants to the European market, we’re now seeing Germany emerge on par as the primary entry point. Historically, Germany would almost always be the secondary priority after the UK, then followed by France, the Netherlands, Spain and Italy. “Second, we’ve seen clients proactively ask to have multinational teams lead their account in Europe, as opposed to the traditional approach of having a UK-led European approach. In our mind, this is because the UK no longer has the same authority to lead. “This is one of the softer impacts of Brexit in terms of the UK’s perceived influence and leadership in the region.” Mark Pinsent, managing director of The Hoffman Agency Europe, has also noticed a trend for UK-based clients to “explicitly tell us that they’re keen to be positioned as European companies rather than UK”. “That can be tricky if they’re headquartered in the UK [or] don’t have a significant presence on mainland Europe,” he said. “It’ll be interesting to see whether, over time, the UK becomes less of a priority market for international businesses looking to market in Europe… certainly for UK-founded start-ups, I could see it accelerating their need to have EU-based businesses.” – the psychology of the UK’s diminished image is fascinating
New Balance wins $3.9m in damages from China logo copycats | Financial Times – The two defendants, Fujian-based footwear maker New Barlun and its distributor Shanghai Shiyi Trade, have expanded quickly in China’s smaller cities and sold knock off shoes at below half the price of New Balance. – Damages are still pretty low, only 2.5m pounds or so
I haven’t driven a BMW in well over 20 years, so Doug DeMuro’ update on the BMW brand was fascinating.
BMW Twitter account
The BMW brand issue hadn’t been on my radar until Doug DeMuro talked about it. A number of things seem to be happening with BMW.
The company’s customer base is predominantly gen-x and baby boomers; because their cars are expensive. For decade these people have been told that the BMW brand represents the ultimate driving machine.
An important part of the visual BMW brand: the design language that it is implementing on is problematic. In particular the ugly ‘beaver teeth grill. This is ironic given that an electric car doesn’t need a grill for its engine.
It didn’t help things that from a certain angle the rear of the BMW iX has a resemblance to the Nissan Juke.
Nissan Juke 1.6 Advance 2017 by RLGNZLZ
It has at least an internal perception that it has lost its BMW brand mojo as there is a slow steady move away from the internal combustion engine.
If you look at other YouTube automotive channels, BMW seems to be having reliability issues with its current cars and the repairs are expensive to do. Back in the early 1970s the BMW brand was tarnished with negative perceptions about the cars being rust buckets and the company managed to lick that. The current engineering problems sound more complex.
All of this makes the BMW brand sound more difficult to fix than being on the socials and being up to date with their yoofspeak.
Canada concerned as Hong Kong starts to force dual citizens to choose status – The Globe and Mail – individuals who declare themselves Canadian could now lose their residency rights to live in Hong Kong.“It’s the beginning of the end for people in Hong Kong with Canadian status,” said Vancouver immigration lawyer Richard Kurland. The policy on dual citizenship stems from a 1980 law in mainland China that was then applied to Hong Kong when the United Kingdom handed over the city to Beijing in 1997. “The law was on the books for years but it wasn’t always enforced,” Mr. Kurland said. – interesting move
The Longer Telegram: Toward a new American China strategy – Atlantic Council – single most important challenge facing the United States and the democratic world in the twenty-first century is the rise of an increasingly authoritarian and aggressive China under Xi Jinping. China has long had an integrated, operational strategy for dealing with the United States. The United States has so far had no such strategy with regard to China. This is a dereliction of national responsibility – interesting read. Right on with its diagnostics, but off base with its proposed solution. The west thought that Xi was a moderate when he came into power. He has extended his loyalists in every aspect of the party. The Jiang Zemin faction of the party, which would be an alternative aren’t liberal; they used the army to put down student protests in 1989.
Commission chief tells charities not to be ‘captured’ for politics | Charities | The Guardian – Charities that support politically or culturally contentious causes should expect their charitable status to come under regulatory scrutiny even if they are acting within the law, according to the outgoing chair of the Charity Commission. The Tory peer Tina Stowell, who is stepping down after three years in the post, warned charities against being “captured” by unnamed people who wish to push a partial view of the world and use charity platforms to wage war on “political enemies”. – this is going to be interesting
Looking downstream – Tortoise – as a long time netizen I am less certain that regulating platforms for content will work and worry about the precedent it would set for authoritarian regimes. Should OTT platforms such as Netflix, Disney+ or Amazon Prime carry news? Here my first question is how do you define news? Should they do real time news reporting, probably not even if they could. Should they do current affairs analysis – they already do if you look at the kind of documentaries that they have. I think that there should be real questions about those documentaries in terms of quality and bias? While we’re on about documentary making, surely the BBC could be doing more work with Adam Curtis or Bellingcat and have those people training the documentary film makers of tomorrow
Liu Yifei Announced as Face of Louis Vuitton China | Radii China – LVMH betting on woke western liberals not being their customer base and choosing polarising star. It also shows how far Fan Bingbing’s star has fallen since her tax troubles. Crystal Liu was the protagonist in the car crash live action version of Mulan. She’s also not as beautiful as Fan Bingbing
How Europe Became a Model for the 21st Century – DER SPIEGEL – Despite its long list of crises in recent years – including the most recent vaccine snafu – the European Union has become a global pacesetter. Its laws and regulations have established global norms. This has made the bloc a 21st century model. – I agree with the direction of this article, even if some of the examples could be debated
Silicon Valley’s iron grip on venture capital is slipping — Quartz – the shift to smaller tech hubs that’s been going on for years is set to move even faster, according to Stanford. “The pandemic has thrust the VC ecosystem into new territory where Zoom meetings and alternative deal sourcing methods reign supreme,” he wrote in an analyst note. “This shift has, at least somewhat, leveled the playing field for investor attention…Over Zoom, it doesn’t matter if the company is in the same building, city, state, or country.” – no credit given for the dissipation technology start-ups to places like Singapore and Shenzhen. For instance, social darling Clubhouse is based on Chinese voice technology. But there’s also a bigger issue about the decline in hard innovation which is easier to do in a tight cluster. Since its no longer happening, the cluster makes less sense. More on innovation here.
Bases for Trust in a Supply Chain – Lawfare – With a supply chain attack, there is a potentially long delay between the introduction of a vulnerability and its exploitation. In addition, infiltrating a supplier generally requires a well-resourced adversary and interaction with that supplier. So compared to the alternatives, preparations for a supply chain attack take longer and have a higher risk of discovery. The risks of discovery can be reduced, however, if inserted vulnerabilities resemble ordinary flaws and, thus, the malicious intent is disguised. The digital systems on which individuals and nations increasingly depend are large and complex, so today they are likely to be rife with vulnerabilities. Many of those vulnerabilities will be known, some unpatched, and others easily discovered by analysis. In short, such systems are easy to compromise.
Russian hack brings changes, uncertainty to US court system – new rules for filing sensitive documents are one of the clearest ways the hack has affected the court system. But the full impact remains unknown. Hackers probably gained access to the vast trove of confidential information hidden in sealed documents, including trade secrets, espionage targets, whistleblower reports and arrest warrants. It could take years to learn what information was obtained and what hackers are doing with it – you can’t hack paper
Collapse OS — Bootstrap post-collapse technology – a vision of dystopian technology that fits right in with William Gibson’s more recent views of the future with the Jackpot. A slow moving systemic collapse due to global warming, flooding, pollution, global conflict, terrorism and pandemics
The battle inside Signal – Platformer – Casey Newton has pulled together an interesting portrait of Signal and how its developing as its user base scales
Online retailers are playing a risky game with the UK high street | Financial Times – like Arcadia and countless rivals, Debenhams had underlying conditions stemming from over-enthusiastic cash extraction. CVC, Texas Pacific and Merrill Lynch acquired Debenhams in 2003 in a £1.8bn leveraged buyout that needed just £600m of equity. The trio then extracted more than £1bn via property sale and leaseback agreements and floated it again for almost the same price in 2006 – the Times makes a really good case with regards private equity excesses. Other examples outside the retail sector include TWA and Eircom
Jim Slater and the warning from the 1970s that we ignored – BBC News – a very brief piece in the BBC Online reflecting on the legacy of Slater Walker. The reality is that there needs to be a far deeper reflection on the effect of his asset stripping model had lighting a touch paper that led directly to deindustrialisation, populism and Brexit.
“Marketing is what you do when you have a sh#tty product.” – Christopher Lochhead – not particularly smart viewpoint, though great product and service design really helps marketing and helps reduce the amount that needs to be spent due to word of mouth. A second thought occurred to me, people with this mindset are building the entire martech stack….
