Ged Carroll

Category: luxury | 奢華 | 사치 | 贅沢

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.

As I have written elsewhere on this blog:

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.

  • VR Headset + more things

    Apple’s first VR headset will reportedly be powerful and pricey – CNET – its a rumour so take with a pinch of salt, the approach outlined reminded me of being rather similar the way Oculus was in their early model VR headset devices. It is also interesting how they consider a VR headset as a stepping stone to AR glasses. Will Apple be enough to mainstream the VR headset? More related content here.

    Next drops bid to buy Topshop after Arcadia’s breakup | Philip Green | The Guardian – The Next consortium was pitted against Shein, a Chinese online fashion retailer and Authentic Brands, the US owner of the Barneys department store, which has been linked to a joint bid with JD Sports. The online retailers Asos and Boohoo are also thought to be involved in the mix. Shein tabled an offer worth in excess of £300m for Topshop and Topman, according to Sky News which first reported the development. It added that a separate process was being run for other Arcadia brands such as Burton and Dorothy Perkins

    ‎Finding Genius Podcast: Telehealth Technology Breaking the Barrier of Geography on Apple Podcasts – practitioner discussion on the realities of telehealth for diabetes and obesity management treatment

    Asians dump WhatsApp for Signal and Telegram on privacy concerns – Nikkei Asia 

    TSMC hikes capex to record $28bn as chip race heats up – Nikkei Asia 

    ‘Absolute carnage’: EU hauliers reject UK jobs over Brexit rules | Brexit | The Guardian – data showed that an increasing number of freight groups rejected contracts to move goods from France to Britain in the second week of January. Transporeon, a German software company that works with 100,000 logistics service providers, said freight forwarders had rejected jobs to move goods from Germany, Italy and Poland into Britain. In the second week of January the rejection rate for transport to the UK was up 168% on the third quarter of 2020 and had doubled in the first calendar week of the year

    Battle of the Robots Still Favors Japan and Europe—For Now – WSJ – Covid-19 has accelerated automation in factories, especially in manufacturing powerhouse China. Foreign companies have long dominated the market for industrial robots and automation tools there—but there are signs that dominance is fraying around the edges. As the factory for the world, China is unsurprisingly far and away the largest market for industrial robots. Before the pandemic, however, the U.S.-China trade war was slowing growth. New installations of industrial robots amounted to 140,500 in 2019, a 9% decline from the previous year, but still almost three times the number for second-place Japan, according to the International Federation of Robotics. Last year was likely much better: Credit Suisse estimates that China’s industrial-robotics market grew 9.5% in 2020.

    Audi and BMW shut down car subscription programs | Engadget – When Mercedes-Benz shuttered Collection, however, it cited mediocre demand and complaints about the hassles of switching personal items between vehicles. While it wasn’t mentioned at the time, the COVID-19 pandemic hasn’t helped matters. People are commuting less if at all, and may be more interested in saving money than the flexibility of swapping cars.Subscription ervices like Volvo Care are still going, although it’s not certain how well they’re faring.There may be a slight revival. Automotive News claims Cadillac is testing a resurrected Book service with dealers, although it would arrive a year after the brand’s hoped-for early 2020 revival. However, the overall market appears to be contracting

    Majority of Europeans fear Biden unable to fix ‘broken’ US | World news | The Guardian – “Europeans like Biden, but they don’t think America will come back as a global leader,” said the thinktank’s director, Mark Leonard. “When George W Bush was president, they were divided about how America should use its power. With Biden entering the White House, they are divided about whether America has power at all.” The survey of 15,000 people in 11 European countries, conducted at the end of last year, found that the shift in European sentiment towards the US in the wake of the Trump presidency had led to a corresponding unwillingness to support Washington in potential international disputes

    Exclusive: City of London Corp boss says ‘not our place’ to criticise China : CityAM – Nathan Law, one of the leaders of the 2014 Umbrella Movement protests in the territory and now in exile in London, told City A.M.’s City View podcast yesterday that UK firms’ “compliance and collusion” with the Chinese Communist Party’s agenda threatened the West’s “democratic values”. The pointed criticism comes after firms including HSBC and Standard Chartered, headquartered in London but who see significant revenues in Asia, backed the imposition of a draconian National Security Law in Hong Kong

    Damaging brand image is rarely harmful because it matters so little – In the age of Trump, what people think of you is far less important than the more brutal objective of getting people to think about you. – Salience is so important

    Zoom spy claims a warning for multinationals in China | Financial Times – the point is that every MNC is compromised because of the pressure that China brings on employees in their country

    IWC’s Christopher Grainger-Herr: “We Are Currently Experiencing Extraordinary Times.” – part of the issue with IWC is pre-COVID product related including using movements that watch fans look down on

    China-US rivalry: how the Gulf War sparked Beijing’s military revolution | South China Morning Post 

  • Mask shops & things that caught my eye this week

    Mask Shops In Hong Kong

    Mask shops have now become a thing. When I lived in Hong Kong, you would buy your masks from the local pharmacy chain store depending whether you were near a Watsons or a Mannings. It was good form among locals to wear a mask when you felt unwell; particularly with cold like symptoms. COVID-19 drove the importance of masks. With this has come dedicated mask shops.

    New mask companies sprang up to deal with the need for locally made trusted, good quality masks. Mask Lab built their own factory in the leased space of a former garment factory, now vacant due to the deindustrialisation of Hong Kong with China’s opening up. Mask shops started in residential areas with lower retail rents alongside online sales.

    Mask Lab shop

    Now these businesses have managed to move into flagship retail locations. Looking at this photo Mask Lab seems to be in the Central district of Hong Kong, close to luxury retail stores and the high-end Landmark shopping mall. More related posts here.

    Mattel collaboration with Stüssy

    Mattel collaboration - Stüssy magic eight ball

    The eight ball motif has been a design staple for Stüssy since at least the late 1980s. It was only a matter of time before they did a collaboration with Mattel – maker of the Magic Eight-Ball. There is a capsule clothes collection and a co-branded magic eight ball with a special dice inside it. Magic “8” Ball™ Tee – Mattel Collaboration | Stussy 

    Climate crisis font

    Climate crisis font | Helsingin Sanomat – is a lovely free font that visualises the impact of climate change. Helsingin Sanomat is the largest subscription newspaper in Finland.

    Appalachian Mountain Music

    David Hoffman shot this great documentary on Appalachian mountain music and one of its prime advocates during the early to mid-20th century. The film’s protagonist Bascom Lamar Lunsford collected and promoted Appalachian mountain music and dance in poetry and storytelling.

    Bandulu

    Bandulu Street Couture use customised embroidery on Nike and Nike ACG garments that is sympathetic to the base garments. In their own words:

    ‘Bandulu means fake, bootleg, ghetto. Like that white tee from Marshall’s with the name of some couturier, screenprinted in gold. That little bit of luxury gives clothing a story, with or without vanity. Bandulu believes in adding this quality to the clothes of our world, through upcycling and craftsmanship. Bandulu takes quality, vintage clothing and rejuvenate life into them through hand embellishments. Quality therefore becomes less about reputation, and more about integrity. You know its real if its fake.’

    Bandulu Street Couture

  • Fractured tech lobby + more things

    The fractured tech lobby’s uphill battles – Axios – The fractured tech lobby is a sign of too many firms working at cross purposes. – The Internet Association was founded almost a decade ago to be Silicon Valley’s voice in Washington. But now its biggest members — companies like Facebook, Google and Amazon — increasingly bump heads as they each seek to channel policymakers’ fury away from themselves, and they can have wildly different goals from smaller members. Facebook, for instance, has signaled that it’s open to new federal laws introducing privacy regulations and modest updates to Section 230, tech’s liability shield. Smaller companies worry giants could handle the burden of complying while they’d struggle to survive. – The fractured tech lobby is going to offer a bounty for law firms and K Street lobbyists. It will also open up investigations around the world from the EU to Seoul, Korea. China won’t be involved since it blocks most of the key members of the Internet Association – the fractured tech lobby in question.

    The Kremlin’s Anti-Western (and Remarkably Successful) Middle East Media Project | Interpreter magazine – Dr. Naila Hamdy, an associate professor of journalism and mass communication at the American University in Cairo, noted how “RT may have filled up that gap” left in Egypt and the wider region following the Arab Spring, when an increasing number of viewers began to see Al-Jazeera as closely affiliated with the Muslim Brotherhood and other Islamist parties. This increasing regional polarization erupted in the summer of 2017 with the Saudi-led embargo of Qatar, with Saudi and its Gulf Cooperation Council (GCC) partners demanding the closure of Al Jazeera as punishment for Qatar’s alleged support for the Brotherhood, as well as Iran and its regional Shiite proxies

    The Radicalization of Kevin Greeson — ProPublica – interesting article and an under-covered subject. The flpside of this article is how the Democrats have lost their base in these communities and it reminds me a lot of how Labour lost its base outside the major cities in that respect. They no longer represent working people, but are instead considered to be playing identity politics, the economics of new-liberalism is largely universal

    China’s rich spent US$54 billion at home on luxury goods last year with coronavirus halting overseas trips | South China Morning Post 

    From Dialect to Grapholect: Written Cantonese from a folkloristic Viewpoint by Chin Wan-kan Hong Kong Policy Research Institute Ltd. – fascinating white paper on Cantonese culture and language. What becomes apparent is that Beijing’s adoption of Mandarin demonstrates its inability to decolonise its culture, by taking the language of the Manchu people who conquered the Han people and others. (PDF) More China related content here.

    Sony takes wraps off secret Unreal Engine project, unveils new subsidiary: Sony Immersive Music Studios – Music Business Worldwide 

    Unilever workers will never return to desks full-time, says boss | Working from home | The Guardian – to be honest with you, this was the way Unilever operated with its hot desking policies way before COVID-19. Global headquarters 100VE had way less seats, phones, desk space and meeting rooms than were needed

    Xi encourages Starbucks to help promote China-U.S. ties – Xinhua | English.news.cn – one has to ask where is the line that executives from businesses like Starbucks and Goldman Sachs cross to be viewed as foreign agents in the US due to their relationship with the Chinese government

    Sheryl Sandberg downplayed Facebook’s blame for Capitol riot, but evidence points to role – The Washington Post – Fliers and hashtags promoting the pro-Trump rally circulated on Facebook and Instagram in the days and weeks beforehand

    Ad Aged: Standing up for truth. (Haha.) – For a society or an industry to function it needs to have a set of common facts. It’s really that simple. If you hear an assertion, ask for evidence. Whether or not you agree with it. If you make an assertion, be prepared to back it up with a piece of paper.

    WhatsApp fights back as users flee to Signal and Telegram | Financial Times – The encrypted messaging app, which has more than 2bn users globally, and several of its senior executives spent Tuesday trying to clarify forthcoming privacy policy changes covering the data that can be shared between WhatsApp and its parent now that it is deepening its push into ecommerce. Signal was downloaded 8.8m times worldwide in the week after the WhatsApp changes were first announced on January 4, versus 246,000 times the week before, according to data from Sensor Tower. The app also got a boost when Elon Musk, the chief executive of Tesla, tweeted “Use Signal” on January 7.  By contrast, WhatsApp recorded 9.7m downloads in the week after the announcement, compared with 11.3m before, a 14 per cent decrease

    Detained US lawyer urges Hong Kong to look to Ireland for inspiration | Financial Times – Look at Irish history . . . They were completely hopeless for so long, but eventually they got part of Ireland — they got a republic,” Mr Clancey told the Financial Times. “In a difficult situation we shouldn’t just give up and have no hope for the future.” Mr Clancey was still asleep when police arrived to detain him last Wednesday. After his arrest, police escorted Mr Clancey, a Hong Kong permanent resident, to his office to conduct a search. His firm, headed by veteran lawyer Albert Ho, is known for representing anti-government activists. His arrest has stirred fears authorities will target lawyers in Hong Kong who represent opposition figures in political cases — a tactic common in mainland China

    Chinese freight platform to raise more cash on huge investor demand | Financial Times – investor frenzy bidding seven times the amount that Didi Chuxing was looking for when doing a capital round for its freight business

  • Copycats + more things

    Copycats everywhere: Hong Kong designers of popular Covid-19 mask holders dismayed by flood of fakes | South China Morning Post – Chinese businesses don’t just rip off the west and other countries, but are copycats even of Hong Kong Chinese products as well. In this respect the copyrights resemble the early 19th century industrialist in the US who were inveterate copycats themselves. Charles Dickens saw is own books copied in the US without his permission and affected American writers who found their works published by copycats abroad.

    Fascinating reading that shows Trump’s appeal is broader and more complex than racism and bigotry – South Vietnam’s Flags at the Capitol Riot – Asia Sentinel – its presence signifies support of a group for Trump – in this case, support from a sizable number of Vietnamese Americans. Their biggest and most apparent reason is that Trump was the best-suited and toughest person to stand up against China, whose expansionist and imperial designs have harmed Vietnam in recent decades. In their view, the Chinese Communist Party (CCP) is bent on territorial and other forms of gains and control vis-à-vis a largely impotent Vietnamese government. Anti-Chinese and/or anti-CCP sentiments are hardly exclusive to first- and 1.5-generation Vietnamese Americans. These sentiments are shared among groups as different as Chinese dissidents and immigrants from the Philippines. Surveys have indicated that similar to Vietnamese Americans, a lot of Filipino immigrants have supported and voted for Trump. In fact, Trumpism has been stronger in Vietnam during the last few years than it is in the diaspora. Even though I haven’t seen surveys or studies about Vietnam, anecdotal evidence suggests that it has been overwhelming

    How Brexit killed London’s EU stock trading — Quartz – some think the EU is almost certain to target the UK’s euro-derivatives clearing business. Whereas stock trading of EU company shares is a minor prize, the multi-trillion-dollar swaps market is about much more than just bragging rights. Handling such a titanic amount of derivatives is lucrative and brings with it an ecosystem of skilled jobs and financial expertise

    Dior reunites with Shawn Stüssy for a Chinese New Year collection | Input – continued blending of streetwear and luxury

    One of the best histories that I have read of the streetwear label Stüssy. It only misses out Shawn Stüssy’s second life in streetwear with S/Double – Stüssy | The Journal | MR PORTER  – the rarely mentioned record of the International Stüssy tribe has a hiphop track on one side and reggae on the other. It is pressed in France and the hiphop sides definitely sounds like Ronin Records FORCE n KZee. Ronin Records was part owned by International Stüssy Tribe member Alex Turnbull. I hadn’t realised that this had been put together for the first IST meeting in Tokyo. Many streetwear brands that have come along later have been copycats of Shawn Stüssy’s collaging aesthetic, cultural sampling and even the business model. Look at the way Nigo built up a less formal tribe around A Bathing Ape from Pharrell Williams to James Lavelle. Or the way Supreme took Shawn Stüssy’s cultural sampling to a new level. Rather that reinterpreting it like Stüssy had done with the Chanel logo homage or the repeating logo (a la Gucci or MCM); Supreme copycats Louis Vuitton, then collaborates with them 17 years later.

    China’s home appliance manufacturers left cursing export orders as costs rise, profits vanish amid yuan rally 

    China Technology – Big boots. – Radio Free Mobile – I think that regulatory interference at Alibaba may result in a fine or two but nothing that is going to fundamentally damage the company. Ant Group is another matter, and the mooted restructuring may substantially diminish the value of this company to both Jack Ma and Alibaba with the real value accruing to a new state-owned enterprise. 
    Hence, when looking at Alibaba, I am inclined to look at a scenario where the company pays a fine of $1-2bn but continues to operate as before and one where Ant Financial is worth $0 to Alibaba     – and this FT article adds weight to this viewpoint – Beijing orders Chinese media to censor coverage of Alibaba probe 

    OnlyFans Leaks: Leaked OnlyFans on NSFW ThotHub Target Sex Workers | Mel Magazine – guessing that this won’t end well for some of them

    BBC’s Everyman series was usually focused on religious and tangential products, so this episode was a bit more unusual when it looked at rave culture.

    Advertising & Marketing Trends that will dominate 2021 

    China tried to punish European states for Huawei bans by adding eleventh-hour rule to EU investment deal | South China Morning Post – interesting but unsurprising, also worthwhile considering in conjunction with China hits back at foreign sanctions on Chinese companies and individuals | South China Morning Post 

    Flipper Zero — Tamagochi for Hackers by Flipper Devices Inc. — Kickstarter – wireless signal and protocol sniffer hacking tool in a small easily carried gadget

    Age-positive image library launched to tackle negative stereotypes of later life | Centre for Ageing Better 

    Chinese investor buys controlling stake in AMI -Fashion Network – The strategic investment marks the latest Paris runway brand to have been acquired by a Chinese investor, following the acquisition of Lanvin by Fosun International in September 2005. Sequoia Capital China is a venture capital firm based in Beijing, which has taken stakes in over 600 companies since being founded – including JD.com, Alibaba, Meituan and Wanda Cinemas – though not in any noted fashion brand. I find it fascinating that Sandhill Road stalwart Sequoia Capital is moving investment from technology to a fashion play. Not only that, but that it has happened in its Chinese business that is focusing on the ‘new’ Silicon Valley companies in China

    Prospering in the pandemic: 2020’s top 100 companies | Financial Times 

    Putting the bed to bed // THE FUTON 

    Hong Kong Arrests Are Next Big Test Since National Security Law – Bloomberg – Hong Kong’s authorities insist they are acting to prevent chaos. Opposition figures wanted to plunge the city into an “abyss” and create “mutual destruction,” Secretary for Security John Lee told a briefing. While the process to force the chief executive’s resignation is set out in the Basic Law, Hong Kong’s de facto constitution, the national security law forbids “seriously interfering in, disrupting, or undermining the performance of duties and functions” of the government. Irrespective of this apparent contradiction, the root of Hong Kong’s political dysfunction lies in the government’s lack of democratic legitimacy. The opposition activists could not threaten such action if they did not have popular support; indeed, their program aimed to increase pressure for a more democratic system, as promised in the Basic Law – more explanation from the South China Morning Post’s Inkstone – The primary election that resulted in Hong Kong’s national security mass arrests – Inkstone 

    China’s Communist Party targets Chinese abroad to rally support | South China Morning Post – that would promote views of Chinese diaspora as fifth columnists. I don’t think that its a smart move, but instead a desperate move. Presumably Chinese political theorists think that multiculturalism will give them air cover for policy manipulation in other countries.

  • Knowledge economy + more things

    How does the UK rank as a knowledge economy? – Soft Machines – The big story is the huge rise of China, and in this context, inevitable that the rest of the world’s share of the advanced economy has fallen. But the UK’s fall is larger than competitors (-46%, cf -19% for the USA and -13% for rest of EU) – the definition of knowledge economy used in the research doesn’t play to the UK’s strengths in areas like financial services, education, legal services, accounting services and advertising. But there is no denying the overall pattern, that the UK failed to make the knowledge economy work for it in the same way that China, the US or the EU have managed to do over the last decade

    Do You Want to Buy Less Stuff? Three People Tell Us How – The New York Times – a few things about this. Ms Chai has a lot of nice things, it would be harder to do this if you were starting off with Ikea furnishing for instance

    Cultural institutions in crisis | Financial Times – Financial losses from Covid-19 are not the only challenges museums face. Well before the pandemic, environmental and social activists were holding western institutions vigorously to account. Museums were already struggling with issues of diversity — both in staffing and, more importantly, in representation in their collections — the status of objects in those collections and calls for restitution. The situation is further complicated by criticism of many traditional sources of philanthropic funding and ongoing concern for the environment. The Black Lives Matter movement and other world events put a renewed spotlight on racism, illuminating the “white gaze” of western institutions. Even as museums scrambled to promise that change was afoot, they found themselves ensnared in further criticism. “Did our lives matter when you STOLE ALL OUR THINGS?” retorted writer Stephanie Yeboah when Hartwig Fischer, director of the British Museum, tweeted solidarity for Black Lives Matter (paywall)

    As Understanding of Russian Hacking Grows, So Does Alarm – The New York Times – By staging their attacks from servers inside the United States, in some cases using computers in the same town or city as their victims, according to FireEye, the Russians took advantage of limits on the National Security Agency’s authority. Congress has not given the agency or homeland security any authority to enter or defend private sector networks. It was on these networks that S.V.R. operatives were less careful, leaving clues about their intrusions that FireEye was ultimately able to find. By inserting themselves into the SolarWinds’ Orion update and using custom tools, they also avoided tripping the alarms of the “Einstein” detection system that homeland security deployed across government agencies to catch known malware, and the so-called C.D.M. program that was explicitly devised to alert agencies to suspicious activity (paywall)

    Why Markets Boomed in a Year of Human Misery – The New York Times – the jobs lost were low wages compared to the knowledge workers who benefited from home working with increased savings

    Tesla blasts ‘ridiculously fabricated’ report raising quality concerns at Shanghai plant – giga sweatshop is quite a catchy sound bite

    The way we train AI is fundamentally flawed | MIT Technology Review 

    Why 2021 will be a bumper year for M&A | Vogue Business – the big three trends for M&A in 2021: conglomerates looking for an opportunity to consolidate, luxury brands stepping up vertical integration by investing in distressed parts of their supply chain, and a focus on investment in digital expertise and the APAC region. – more luxury related content here.