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.

  • Zero touch spaces + more things

    Zero touch spaces – Wunderman Thompson Intelligence  – I am actually liking these Logan’s Run style personal space bubbles. I also understand Wunderman Thomson’s concerns over zero touch spaces being close, but still isolated. I think of zero touch spaces as a physical manifestation of what we do mentally through cocooning with gadgets such as iPods, smartphones (and apps) and noise-cancelling headphones. Before that there was social networks (rather than real world networking), sat navs, etc. Both the zero touch spaces and cocooning puts distance between us and the world around us.

    https://flic.kr/p/hFSb5T
    Fiona Paton geodesic dome

    Government minister Liz Truss. get pwned on Brexit, international trade and the WTO by Adam S Posen of the Peterson Institute of International Economics. The discussion is so one-sided, it is like watching a naked drunkard getting mauled by a polite but hungry polar bear. Truss’ ministerial portfolio is international trade. It’s exceptionally grim to watch if you’re based in the UK.

    Ad Aged: Talmudic, Biblical, Keynesian and Advertising. – I have taken a different path. I always have and I always will. I try to do what I think is right and smart and good—and mostly difficult, not what is popular, obvious and pandering. Never trust anything from anyone who spends a good portion of their time practicing expressions in front of the mirror – some savage burns in this post

    How a Chinese agent used LinkedIn to hunt for targets – BBC News – The use of LinkedIn is brazen, but not surprising, said Matthew Brazil, the co-author of Chinese Communist Espionage: An Intelligence Primer. “I think lots of worldwide intelligence agencies probably use it to seek out sources of information,” he said. “Because it’s in everybody’s interest who is on LinkedIn to put their whole career on there for everybody to see – it’s an unusually valuable tool in that regard.” He said that commissioning consultant reports is a way for agents to get “a hook” into a potentially valuable source who might later be convinced to supply classified information. I’d be surprised if LinkedIn wasn’t used in this way.

    You Won’t Find These Masks at 7-Eleven – The New York Times – Although the pandemic will end at some point, he added, “people will still be using masks because they’re afraid.” While it’s unclear how well some of these more ambitious masks will fare with consumers, one innovation has been a clear hit: face coverings with high-tech fabrics that are said to provide superior comfort or protection. As summer temperatures rise, masks made of materials intended to keep wearers cool are in demand. People who have been wearing reusable cloth masks — including those sent by the Japanese government to every household in the country — are finding them ill suited for the heat and humidity of summer in central Japan, much less Singapore or Hong Kong. – That humidity also has issues for skin conditions beneath the masks offering beauty product opportunities. More design-related posts here.

    Parfums Givenchy Debuts Makeup in Animal Crossing – WWD – we’re seeing more of these brand activity for a few reasons. Lockdown gave the game increased cultural relevance. The game has a significant amount of female users. Like the original Atari games it isn’t too childish or gender-specific. Animal Crossing’s creator tools allowed consumers to bring brands to the platform.

    Jibo, the social robot that was supposed to die, is getting a second life – The Verge – interesting how NTT is looking to build an all digital version, I think the physical artefact is as important as the digital being

    China’s two-child policy means more babies named after mum | Today Online – Giving the mother’s surname to a child is gaining traction in Chinese cities, defying deeply entrenched family traditions in the country. The country’s one-child rule, which ran from 1979 to 2016, meant daughters have also been tasked with safeguarding their parents’ wealth and bloodline — previously this had been the preserve of male heirs. This caused a shift in some family’s attitudes but it was the law change to allow couples to have two children that has ignited the trend for kids to be given the maternal name. Now, some parents are giving the father’s family name to the first born and the mother’s to the second child.

    He’s 83, She’s 84, and They Model Other People’s Forgotten Laundry – The New York Times – these are the cutest influencers

  • Venture capital, clean tech + more

    Venture Capital and Cleantech: The Wrong Model for Clean Energy Innovation by Gaddy, Sivaram and O’Sullivan – venture capital investment is very inefficient according to this MIT paper. More venture capital related posts here.

    Why business in Hong Kong should be worried | The Economist – Hong Kong is trapped like the grips of vice. Its economy is dominated by finance and rent-seeking businesses – Simon Cartledge for Gavekal Dragonomics, a consultancy, because these firms are over-represented in government, “Hong Kong’s single biggest disincentive to risk-taking and entrepreneurship—its high costs, especially for property—cannot be tackled.” That is why the back-to-business message is unlikely to resonate with ordinary Hong Kongers. This is probably why Hong Kong start-ups like DJI moved to Shenzhen to found their businesses. (Frank Wang did a lot of the key work on DJI drones whilst studying at HKUST. And even benefited from a small HKUST grant. But he moved across to Shenzhen to found the business itself in 2006.) Fintech has been a bit of a busted flush. It was the latest in a long line of business ideas like wine trading, the arts and medical tourism as failed niches for Hong Kong. Singapore seems to have been much more successful in business creation and seems to be seeing more venture capital interest. Current sectors in Hong Kong likely to be affected include the legal practices specialising in commercial arbitration. Without trustworthy commercial arbitration in Hong Kong doing business in China looks much less attractive. Singapore is trying to bridge the gap, but I suspect that there might be long term corrosion of Chinese business dealings. Digital companies and foreign banks face big worries. Between the Hong Kong Autonomy Act and the Hong Kong National Security Law – Helping America to enforce sanctions would violate the security law. Not doing so would incur American penalties

    The untold story of Stripe, the secretive $20bn startup driving Apple, Amazon and Facebook | WIRED UK – what’s more interesting about Stripe is the brothers reading list

    Remarks to the Economic Club of New York – United States Department of State – interesting speech by Mike Pompeo

    What It’s Like to Escape the Mindset of a Conspiracy Theorist – Vice – fascinating psychology

    Barr warns against corporate America’s China ‘appeasement’ | Financial Times – “You should be alert to how you might be used, and how your efforts on behalf of a foreign company or government could implicate the Foreign Agents Registration Act,” he said, referencing a 1938 law that requires foreign agents to publicly identify themselves – those comments hit US banks, Apple and other US multinationals. Attorney General William P. Barr Delivers Remarks on China Policy at the Gerald R. Ford Presidential Museum | OPA | Department of Justice – the US C-suite executives must be getting very worried about this

    Quisling

    The State of Strategy. A view from the Frontline | Noteworthy – The Journal Blog – great read and nails the issues affecting strategy and planning at the moment

    Mark Ritson: In a virtual marketplace, only the strongest brands will survive – Companies see better profit margins and an almost unlimited customer base but miss the drastic reduction in barriers to entry. – so brand hyper-competition will ensue and the winner takes all model will extend beyond tech. Expect venture capital money to pour all kinds of weird industry niches as they try to pick category winners

    WeChat users in the US say a potential ban of the app would cut them off from friends and family in China | South China Morning Post – Banning it might be a mistake. It would be more worthwhile using WeChat data to investigate Chinese in the US with ‘anti American’ sentiment as it’s easy to surveill in comparison to other platforms. WeChat sends messages in the clear with no encryption at all. You then start using the Espionage Act or the Patriot Act prosecutions

    Chinese liquor group Kweichow Moutai tumbles after graft news report | Financial Times – Moutai sales are linked to gifting and lavish consumption and some have linked the share price increase with a corresponding uplift in sales and by implication graft. The damaging bit in the article is that Moutai’s former chairman Yuan Renguo quoted saying in private that sales linked to corruption are “a normal part of business” and that China’s corruption clampdown would not reach far enough to affect the company’s business

    Banning junk food from TV an ‘irrelevant symbolic gesture’ that won’t reduce obesity | The Drum – the argument whilst true won’t be believed by regulators. Their rationale would be why would junk food companies advertise if it didn’t work? The distinction of this is junk food brand fighting out with similar brands in its category won’t wash. Secondly, advertising bans worked in the past on tobacco products over time

    The party’s grip – Under a new national-security law, Hong Kong is already a changed city | The Economist – you have to wonder about the share run and will the pop of the bubble be blamed on ‘foreign interference’?

    Outrage Over China’s Treatment of Hong Kong Galvanizes the West – WSJ – Complaints about China have piled up in Western capitals in recent years, but it took Beijing’s new curbs on Hong Kong’s autonomy to galvanize them around something approaching a common cause. – In many respects its like boiling a frog in reverse, it is likely that China didn’t expect the frog to jump out of the pot, given that the heat had been on so long

    Opinion | A Coronavirus Care Package From China – The New York Times – After the Communist takeover in 1949, traditional Chinese medicine was institutionalized. Folk remedies helped fulfill both a tangible need — credentialed doctors were scarce — and an ideological end: That system of knowledge is quintessentially and uniquely Chinese.  Today, the Chinese government sees a political opportunity in the continuing emotional appeal of traditional medicine. If Chinese people can embrace an Eastern alternative to Western medicine, they might also be more likely to accept the Communist Party’s governance model and reject liberal democracy

    Speaking in Tongues – Chinese Storytellers – such a great essay on the current challenge facing Chinese (and in particular Hong Kongers) writing for foreign audiences: a Chinese storyteller telling stories for an English-speaking audience in a divided world. As a writer who has called Hong Kong, Beijing and New Haven home, I find myself often in the position of what Zadie Smith once called “speaking in tongues”: equivocating between the lens of the insider and the outsider, examining the places I call home with both the “objective,” parachuted gaze of the foreign correspondent, and the emotionally implicated and invested eye of the local storyteller. Increasingly, that has felt impossible

    Google considers alternatives to Hong Kong for undersea cable | Financial Times – Hong Kong has – become less critical for not only US cloud providers but also their Chinese rivals, according to Tao Wu, a senior research analyst for Gartner, a tech research firm. “Singapore has become much more important than Hong Kong from a location and population perspective,” Ms Wu said. “Other top cloud providers such as Alibaba Cloud are much more focused on south-east Asia to go global than expanding in Hong Kong.” – this will have a big impact for those property developers who’ve invested in data centres (internet hotels). Hong Kong’s financial position for international trading desks will also be diminished if international telecoms infrastructure starts to divert away from Hong Kong. From a pure connectivity point of view Korea, Singapore and even the Philippines start to look really good

  • Hana Kimura + more things

    Hana Kimura

    Hana Kimura was a reality TV star appearing in a Netflix Japan show. She got a lot of unfair online abuse which contributed to her taking her life. Kimura was just 22 years old. YouTube user Nibota does a really good download on what happened. It mirrors experiences reality shows around the world seem to provoke in online behaviour. Hana Kimura worked in the entertainment industry as a wrestler and her death is indescribably tragic. More Japan related posts here.

    Crowns & Owls

    London collective Crowns & Owls shot this advert for Wieden & Kennedy Tokyo client Nike Korea. Entitled ‘You can’t stop us’ it symbolises ‘ the story of Shim Suk-hee; the gold medalist speed skater and national icon whose bravery in confronting her experience with systematic physical, sexual and mental abuse within 2019 South Korean sport’.

    They actually built the tunnel inside South Korea’s largest indoor ice rink.

    Yojiro Arai

    Nescafé Hong Kong has a new animated advert for canned coffee. It was directed by Yojiro Arai, formerly of Studio Ghibli worked with a a Japanese team for the best part of a year to provide the authentic backdrop of Hong Kong and you can see it in the details, from the estate agent windows to the money plant in an office lobby. (H/T via the Mad Man blog (HK)).

    Loewe

    Lovely case study of an ad by luxury brand Loewe. This was a Christmas film without the cliches of John Lewis et al. It is an interesting mix of analogue skills which reflect the craftsmanship that luxury good brands like Loewe have in their DNA.

    Jeremy Fleming, GCHQ

    Jeremy Fleming, the current director of GCHQ gave a presentation for Imperial College and it is very similar to one he gave to the online version of the Cheltenham Festival. Unsurprisingly coronavirus offered an opportunity for hackers. It is interesting that he goes to talk about privacy and data protection on contract tracing apps. He doesn’t provide a concrete answer.

  • Cathay Pacific problems + more

    Cathay Pacific merger hits roadblock from aviation regulator: report | Hong Kong Business – this makes sense as the ‘other shoe dropping’ following last years resignation of Cathay Pacific CEO Rupert Hogg due to Chinese government pressure amidst the Hong Kong protest movement. This appears to be all about squeezing Hong Kong business to kowtow further to Beijing’s authoritarian Han ethno-nationalist agenda. It could be also softening up Cathay Pacific for a bargain basement takeover by one of the Chinese state airlines as a fuck you to the Swire taipans and long suffering Hong Kong retail shareholders, instead lining the pockets of some mainland princelings

    Samsung Chief Grilled over Succession Fiddle – The Chosun Ilbo (English Edition) – each Samsung C&T stake was calculated as equal to just 0.35 Cheil Industries stakes in the merger, and prosecutors believe that Samsung intentionally inflated the value of Cheil Industries and understated the value of Samsung C&T, thereby causing damage to other shareholders. The second charge focuses on allegations of a W4.5-trillion accounting fraud involving Samsung Biologics, a key affiliate of Cheil Industries. Prosecutors suspect Samsung hid the debts of subsidiary Samsung Bioepis to inflate the value of Samsung Biologics – if the allegations are true the Lees were bilking retail and institutional investors about of many millions of dollars and the Korean government might stand to lose a substantial amount of inheritance tax. More on Samsung here

    YouTube deletes comments critical of China’s Communist Party – apparently due to a software ‘flaw’ – all of this is going to feed into the grist mill for tighter control and regulation of social platforms in the US and other western markets. If it had been a hack, it would have been impressive

    動森情報：【ANNA SUI加入《集合啦！動物森友會》！快搶2020年春夏季時裝！】 – 香港人遊香港 – fashion brand Anna Sui joins Animal Crossing including virtual versions of new seasons design. Overall the way that brands are using Animal Crossing reminds me a lot of work that I did back in the day with adidas when I was inhouse at Yahoo!. Branded clothing came to avatars. But with the amount of momentum behind Animal Crossing, I am expecting much more exciting developments. How could Nintendo monetise this better, without ruining gameplay?

    E-Commerce Channels Dominant but Physical Stores are Equally Important – Nielsen – interesting how its geographic factors like Singapore where retailing is very convenient. I had seen similar claims made about US food retailing as well

    New Research Spells Big Trouble For Movie Theatres | Brandwatch – ok you can query the validity of the data but its interesting

    The Rise of ‘Affordable Premium’ in Korea’s Smartphone Market | Counterpoint Research – my hypothesis is that utility has topped out for Korean consumers on smartphones. So long as it runs Instagram and the Kakao suite of messaging and payment apps its fine

    Facebook Executives Shut Down Efforts to Make the Site Less Divisive – WSJ – not terribly surprising (paywall)

    The Quietus | The Many Faces Of Housekeeping: How Wealth & Privilege Are Distorting Underground Music – depressing but not terribly surprising. Looking back, a lot of the biggest rock artists went to ‘good’ schools, Tony Colston-Hayter and hangers on at Sunrise or the second generation criminal oligarch money that funded well-educated scions ventures up North. 1990s super clubs having the money to buy out venues and keep them shut; or buying up all the ad inventory in scene magazines like Mixmag – access to capital and connections make this inevitable. Unfortunately Housekeeping’s stuff is pretty mediocre as well

    Rewatching *Dirty Harry* (no real spoilers) – Marginal REVOLUTION – as usual with San Francisco movies one can see the reach of NIMBY — the city doesn’t look much larger or busier today.  The subtext of the film is that law and order is collapsing, yet San Francisco was far cleaner back then and street harassment never is presented as a risk.  Even the red light district of 1971 seemed better kept than many of the nicer parts circa 2020 – reflecting the 1971 film, shot during the fallout of the summer of love

    Fatalism, Beliefs, and Behaviors During the COVID-19 Pandemic – three main empirical findings. First, individuals dramatically overestimate the infectiousness of COVID-19 relative to expert opinion. Second, providing people with expert information partially corrects their beliefs about the virus. Third, the more infectious people believe that COVID-19 is, the less willing they are to take social distancing measures, a finding we dub the “fatalism effect”. We estimate that small changes in people’s beliefs can generate billions of dollars in mortality benefits

  • Adult entertainment + more things

    Adult entertainment transforms during pandemic – Axios – accelerated move towards interactive and custom adult entertainment production. But US legal issues are getting in the way – Is OnlyFans Deleting Sex Workers’ Accounts? – Rolling Stone 

    Publishers and journalists on TikTok – Google Sheets – in case your dystopian life needs more dystopia

    Decoding Xi Jinping’s Speech at the World Health Assembly – The Diplomat – The main target of Xi Jinping’s speech is the “global South” and, more specifically, the African continent. The terrain lost in Western democracies amid the pandemic will be hard to win back. However, in terms of global influence, the role of the global South and Africa is vital for China. There also, the image of China has been severely damaged. For the first time, African ambassadors to the PRC had to write a joint letter to protest how African residents were being treated in the PRC

    Investigating China: COVID-19 and the CCP – The Diplomat – capitalizing on the growing crisis in the United States and Europe, the official media in China has been trumpeting China’s purported success in controlling the disease. China has also sent medical missions to countries such as Italy. Sending medical missions abroad had been a strategy the PRC used during the Cold War to promote a new international order: a “people’s revolutionary movement” against colonialism, imperialism, and hegemonism

    The Chinese luxury market after COVID-19 | Daxue Consulting – interesting how the retailing experience is being adversely affected by COVID precautions

    Mixed reactions to current brand comms | YouGov – With the large number of brands clearly defaulting to the ‘all in this together’ message, it’s worth asking: ‘How well does this actually align with their brand values and how they are responding to the current crisis?’ Our research shows that 43% of Brits agree that brands/companies’ current messages and advertising are inauthentic. This figure increases to 52% of males (vs 35% of females). Furthermore, half of respondents (50%) disagree that brands/companies are putting their employees and their customers first and before the company and its profits.

    The Crypto Price-Innovation Cycle – Andreessen Horowitz – crypto winters tend to indicate that like AI approaches before it, its not ready for adoption as a technology / use case. Success hasn’t really been in banking or logistics, where’s the adult entertainment play (which drove a lot of other technologies from 16mm cinema film to VHS and web video)

    Norske offiserer og soldater avslørt av mobilen – Norge – Norwegian military personnel location data found to be for sale

    Why Luxury Brands Are Raising Prices in a Pandemic | BoF Professional, This Week in Fashion | BoF – Luxury brands such as Chanel and Louis Vuitton are raising their prices. This appears to be a strategic move to increase profit margins, offset the effects of reduced sales, and take advantage of the economic recovery in China.

    Electric Vehicles Continue The Same Wasteful Mistakes That Limit Longevity | Hackaday – interesting meditation on software, hardware, design, complexity and quality. Or why a Tesla isn’t as great as Elon makes out

    Thailand’s travel industry readies for relaunch | Financial Times – really interesting design hacks being deployed by the Thai tourism industry. It would be great if this positively moves the needle on Thailand’s reputation as a destination for miserly backpackers and adult entertainment

    Millennials stand out for their technology use | Pew Research Center – Millennials stand out for their technology use, but older generations also embrace digital life

    China’s ‘OK Boomer’: Generations Clash Over the Nation’s Future – The New York Times – China’s baby boomers, born in the 1960s and 70s, experienced a period of great opportunity, similar to American boomers post-WWII. After decades of political unrest and poor economic management under Mao Zedong, China was opening up, leading to abundant jobs and affordable housing. While the government maintained political control, society became more receptive to new ideas and access to information, including international websites, was available. This era offered a promising future.

    In stark contrast, China today is very different, especially for Generation Z (those born after 1990). The economy recently experienced its first contraction since the Mao era due to the coronavirus pandemic, with unemployment estimated at 20%. Additionally, housing in major cities is now largely unaffordable for Gen Z, mirroring challenges faced by their counterparts in cities like New York and San Francisco.

    Merkel cites ‘hard evidence’ Russian hackers targeted her | AFP.com – German Chancellor Angela Merkel expressed her deep distress over evidence of Russian cyberattacks against Germany, stating that these actions undermine her efforts to improve relations with Russia. She described the attacks as “more than uncomfortable” and warned that sanctions could be imposed if this malicious activity continues. Merkel also highlighted that German intelligence services have consistently reported Russian hackers attempting to spy on German lawmakers and politicians.

    Troy Hunt: The Unattributable “db8151dd” Data Breach – interesting, looking at the headers, it looks like a wider scrape from multiple sources. It connects multiple social platform profile IDs alongside real world address data. Possibly a large CRM breach???

    Exclusive: As China Hoarded Medical Supplies, the CIA Believes It Tried to Stop the WHO from Sounding the Alarm on the Pandemic – A CIA report suggests that China attempted to stop the World Health Organization (WHO) from issuing a global alert about the coronavirus outbreak in January. This was reportedly at a time when China was accumulating medical supplies globally.

    The report, confirmed by U.S. intelligence officials, claims that China threatened to withhold cooperation from the WHO’s coronavirus investigation if the agency declared a global health emergency. This is the second such report from a Western intelligence service, and it’s expected to worsen already strained relations between the United States and China concerning the pandemic, which has caused 280,000 deaths worldwide, with a quarter of those in the U.S.

    Even if these allegations are not entirely accurate, their dissemination is negatively impacting the relationship between China and the U.S.

    How to arrange the perfect bookshelf – probably the most cynical depressing thing I’ve read in a while

    Wendy Carlos on her production process that pioneered electronic music as we now know it.

    Amazon releases Kendra to solve enterprise search with AI and machine learning | TechCrunch – interesting that Amazon is not offering Kendra in a box like Google did its enterprise search appliance. I suspect this about moving file servers on to the cloud rather than Amazon into the enterprise

    The VR winter — Benedict Evans – we haven’t worked out what you would do with a great VR device beyond games (or some very niche industrial application), and it’s not clear that we will. We’ve had five years of experimental projects and all sorts of content has been tried, and nothing other than games has really worked. Hell, even adult entertainment has worked as a driver