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.

  • Corona brand + more news

    Mark Ritson: Coronavirus won’t hurt Corona, it will actually boost salesdifferentiation, particularly at the symbolic level, was overstated. Any evidence that people perceived Brand A as vastly different from Brand B could be largely explained by its size and prior purchase experiences. Purchase caused brand image, not vice versa. Ergo building a brand image was waste of marketing effort. The big job of brand was to create salience, so a brand came to mind in buying situations. – Great discussion on the brand salience of Corona beer during the COVID-19 pandemic. On the flipside Corona probably won’t get a brand lift from the corona discussions around a solar eclipse either

    Pandemic brands – Wunderman Thompson Intelligence – nice counter-cyclical brand building and CSR during the corona virus outbreak

    Terabytes Of Stolen Adult Content From OnlyFans Have LeakedThere are communities on Reddit and Telegram dedicated to cracking performers’ accounts and sharing the content without their consent. Many of those videos eventually make their way to various tube sites. A similarly large, though different, OnlyFans leak was posted last Saturday to forums dedicated to cracking and leaking pirated content – that is one of the bleakest things that I’ve read in a good while. Especially given the amount of people who are turning to DIY porn on OnlyFans due to the corona virus disrupting employment for low paid services jobs and the entertainment sector

    Nando’s-inspired sex slang used by girls as young as 10 | Technology | The Guardian – you’ve got to wonder about what other level of monitoring and censorship is going on. I find this monitoring of kids distasteful.

    Second-hand clothes sales: fashion forward | Financial Times – vintage all over again. I wonder how the corona virus will impact the desire for pre-owned clothing?

    porsche to print giant fingerprints of customers onto hood of 911 sport cars | Designboom – not sure I think its smart to post a copy of a biometric data on the bonnet of your car. These are the kind of people rich enough to personal safes and secure rooms with finger print locks. I’ve got visions of hackers working out how to take advantage of this

    IBM and Microsoft sign Vatican pledge for ethical AI | Financial Timesthe pledge, called the “Rome Call for AI Ethics”, will be presented on Friday morning to Pope Francis by Brad Smith, the president of Microsoft, and John Kelly, IBM’s executive vice-president, as well as Vatican officials and Qu Dongyu, the Chinese director-general of the UN Food and Agriculture Organisation – so it wasn’t a Vatican driven initiative after all but a public affairs exercise

    Baidu/tech groups: traffic warning | Financial TimesBut higher traffic does not equate to higher income for search platforms. The contrast is with gaming, where more time playing means surging in-game purchases. For Baidu, which makes about three-quarters of total revenue from advertising, that is bad news. Even before the outbreak, a slowdown in China had trimmed the advertising budgets of clients. Marketing campaigns have now been cut further. Cancelled events and concerts contribute to the malaise. Baidu’s biggest clients, which include online gaming companies, real estate developers and plastic surgery clinics, have little incentive to advertise. A surge in new sign-ups for online games means fewer game ads are needed. Demand for homes has plunged and some cities have banned home sales altogether. Plastic surgery clinics, a lucrative source of core ad revenues, are taking a hit.

    Twitter is testing new ways to fight misinformation — including a community-based points system – sounds curiously like Cory Doctorow’s concept of whuffie

    How to deliver the personalization consumers want while respecting the privacy they expect | Think with Google – I am not convinced by the focus on mass personalisation. What about brand, culture etc?

    Ogilvy brings on global executive creative directors for Instagram | Campaign Asia – God help us

    Volvo Trucks – The Tower By Forsman & Bodenfors, Sweden – THEINSPIRATION.COM – interesting that they got the head of their business directly involved

    Did America Forget How to Make the H-Bomb? – Mother Jones – and things are probably worse with processes reliant on electronic records

    Chinese navy accused of using laser on US military aircraft | Financial Times – This reads like something from a William Gibson novel

    Otl Aicher: The Olympic Designer Who Shaped Your Journey To The Toilet – FlashbakLike a paperclip, we don’t think of Aicher’s pictograms as designed objects per se, but rather as the objects themselves. The chairs we own are someone’s take on a chair. That’s not the case with the average, everyday paperclip. It is what it is, a paperclip. That’s it. Objects at this level of comprehension are simply there. They feel as though they have always been there, and did so from the moment they were presented to the masses. In every country, in every city, they are simply there. In the case of Aicher’s icons they’ve become shorthand that everyone can understand, a set of simple shapes that successfully tells us where to go when we need to use a bathroom. – pretty much sums it up

    Google tops Facebook, Instagram in e-commerce activity, study finds | Mobile Marketer – context wins, but guessing that this may vary by category

    LinkedIn | Balenciaga Summer 2020 collection video – Jay Owens – This is a genius bit of media buying for a collection themed around power and power dressing. The catwalk show saw private equity associates, architects & engineers stalk an EU-blue stage set like a parliamentary building. Advertising on LinkedIn now is just 👌– nails context

    Featured Customer – Oscar the Grouch – Squarespace – I used to hate writing case studies for technology companies at the start of my career, but I do like this one that Squarespace did for Oscar the Grouch

    How Japan’s family businesses use sons-in-law to bring in new blood | Financial TimesFor hundreds of years, owners of Japanese companies have been adopting their sons-in-law as a way to recruit talent — a practice known as mukoyoshi — giving rise to the saying “You can’t choose your sons, but you can choose your sons-in-law”. The histories of zaibatsu (conglomerate) families such as Sumitomo, Mitsui and Iwasaki (of the Mitsubishi group) are studded with adopted relatives and sons-in-law

    The Sun posts £68m loss as it pays out £27m in legal costs over phone-hacking scandalHowever, revenue at News Group Newspapers for the 52 weeks ending 30 June 2019 were up, with total turnover growing to £420m in 2019 from £401.4m in 2018. Circulation of The Sun was down to 1.38 million last year from 1.51 million in 2018, and fell to 1.16 million from 1.28 million for The Sun on Sunday. – so despite revenue increasing losses were up. You also have to wonder how sustainable revenue increases can be with a declining audience

    Smartphone startups take on Google, Apple and put privacy first | DW – I just can’t see these taking off. Interesting data on Google and consumer attitudes

    How Adidas is using WhatsApp as a direct marketing channel – DigidayThe most recent example of the strategy was the “100% Unfair Predator” campaign. Earlier this month, Adidas opened up a hotline on WhatsApp for people in need of a footballer to cover for unreliable teammates on their team. Adidas-sponsored players were made available for games last week once fans had shared some basic information with the hotline such as the game they need the player for. The company’s marketers would notify fans on the morning of their game if their request was successful. The rented players turned up dressed in Adidas’ new Predator20 Mutator footwear. “We know our audience use it to share fixture info, team selection — and team-mates messaging to find last-minute replacements,” said Coveney. “WhatsApp was perfect for the more functional elements of the ‘Rent-a-Pred’ hotline as it allowed consumers to share private information one-to-one with us for review, before being allocated a Predator player near them.”

    Unilever kicks off strategic review of personal-care brands | Campaign Live – this could get interesting

  • Tablet demand + more things

    Tablet demand in China gaining momentum from epidemic | DigiTimes – compared to global demand drop of 20% predicted for tablet computers. This is a fascinating change. Any explanation of this tablet demand is just a hypothesis. My own guess is . More tablet computer related posts here.

    Great mix by Andy Weatherall. It is interesting that for a considerable amount of time there was destination radio and a loyal taping culture. Some cassette decks featured timers similar to a video recorder. People would set them up before they left. Prior to digital formats becoming commonplace, I remember die-hard fans using VHS Hi-Fi audio recording to capture these shows in as high a quality as possible. More listening material here.

    Targeting v context | Campaign Live – really interesting article by Dave Trott. I’d argue (like Dave has) targeting and context together is what matters, rather than targeting or context.

    Experts react to Google’s Brexit-driven decision to move UK data to the US – Business Insider – also probably Google trying to avoid double-jeopardy between EU and UK law presented by UK consumers being out of the EU

    Victoria's Secret
    Victoria’s Secret by Eternity Portfolio

    WSJ City | Victoria’s Secret goes private at $1.1 billion valuation – this is down from over $7 billion. This marks the end of an astonishing destruction of value. The company was also quick to get the power of online. Designers now think live-streaming their show is a matter of course. Back in 1999 I worked at an agency where we did their first live stream. They were also quick to get into e-commerce.

    WSJ City | Grocers Wrest Control of Shelf Space From Struggling Food Giants – is this really news? Interesting that Clorox and General Mills are called out though

    Hackers can trick a Tesla into accelerating by 50 miles per hour – MIT Technology Review – MobilEye complains that it would also fool the human eye, but most humans would at least question it. Artificial smarts isn’t intelligence

    Banned recording reveals China ambassador threatened Faroese leader at secret meeting | Berlingske – the problem might not be Huawei but the Chinese government with Huawei just a conduit – but yeah

  • Regulating AI + more things

    Regulating AI in health and care – NHS Digital – no privacy expert on this panel – which is a bit concerning given they are talking about the business opportunity and regulating AI. More machine learning related posts here.

    120627-O-ZZ999-004
    Dutch army Maj. Christiaan Hoff, left, and Royal Australian Navy Lt. Cmdr. John McHugh, right, perform oral surgery to remove a tumor from a Filipino woman aboard Military Sealift Command hospital ship USNS Mercy (T-AH 19) June 27, 2012, in Samar, Philippines

    Coronavirus: Hong Kong restaurants install physical barriers between diners to allay contagion fears – interesting design hack by restauranteurs – I wonder what it will do to restaurant noise levels?

    The ‘Alpha Female’ Look is Big in China. Brands Take Note. | BoF – good for Dr Martens (paywall)

    Bulgari Is Pulling Out of Baselworld 2020 Because of the Coronavirus | Robb Report – I am surprised that Baselworld hasn’t been re-scheduled already

    Kering Halts Spending in China on Coronavirus Fears | BoF – I’d have still done brand advertising to do contra-cyclical brand building but otherwise their approach makes sense

    The Karakax list: how China targets Uighurs in Xinjiang | Financial Times – surprisingly manual process rather than machine learning driven. China has set up a research lap for technology in law – think pre-crime and done some of the first thinking about regulating AI

    You Can Pay People to Style Your Houseplants – The New York Times – corporate florist now do homes as well (paywall)

    “With the Beatles,” by Haruki Murakami | The New Yorker – great read

    It’s time for global businesses to admit it: China isn’t a good investment – The Washington Post – right sentiment, but the wrong reasons. China is important but too prominent in the global supply chain and a source of weakness. Multiple sourcing makes more sense

    With Harsh Words, China’s Military Denies It Hacked Equifax | New York Times – yeah right. I think its a totally gangster move, really smart work which is why they would do it (paywall)

    Chinese retail is getting a nationalistic boost – Inkstone“The millennials are more faithful to Chinese brands which are capable of delivering equally good quality products like those from foreign powerhouses, if not better,” said Xue Ying, senior marketing manager of Dr Yu. Fashion brands no longer see Hong Kong as bridge to 1.4 billion consumers – Inkstone – an increasingly nationalistic youth

    Coronavirus response benefits Watsons: YouGov | Campaign AsiaHong Kong tycoon Li Ka Shing, who’s majority-ownership of the Watsons franchise is well-known, pledged HKD$100 million (US$13 million) to combat the coronavirus. All of these responses appear to have been met with popular approval for the brand. Since the start of the year, Watsons’ Current Customer score has risen from 20.2 to 29.0, a rise of +8.8 points. Its Recommend score has risen from 9.9 to 16.9 , an increase of +7 points. Finally, its score on YouGov’s Buzz index has jumped from 8.6 to 25.4, a significant increase of +16.8 points. – Li Ka Shing always comes out of a crisis better than he went in

    Coronavirus Test Kits Sent to States Are Flawed, C.D.C. Says – The New York Times the failure of the kits means that states still have to depend on the C.D.C., which will mean several days’ delay in getting results. The C.D.C. announced last week that it had begun shipping about 200 kits to laboratories in the United States and roughly 200 more to labs in other countries. Each kit can test about 700 to 800 specimens from patients, the agency said. – this is frightening (paywall)

  • GOOP + more things

    The power of niche | Campaign magazine – Dave Trott on GOOP – The New York Times said: “The weirder GOOP went, the more its readers rejoiced. Every time there was a negative story about her or her company all it did was bring more people to the site.” Paltrow told a class of Harvard students: “What I do is create a cultural firestorm, and I can monetise those eyeballs.” – cultural firestorm or memorable cultural industrial accident? I agree with Trott to a point. But I can’t work out if GOOP is doing ‘good’ outrage like Benetton managed to do with its ad campaigns, or ‘bad’ outrage like Michael O’Leary at Ryanair. Secondly, you might buy GOOP earrings but would you tell anyone where you bought them? Would they be judging you because you’re a GOOP customer. The problem GOOP has is that it’s not causing outrage with the old or conservative per se. It’s more likely to be customer’s peers thinking that as a GOOP customer you buy into bunkum of Palthrow. Brand neighbourhoods are still important and GOOP nestles comfortably in crank corner with David Icke and Uri Geller. More on beauty related stories here.

    Benetton USSR & USA ad
    Benetton ad from the 1980s which contrasted with the Reagan-era Cold War sentiment of the Soviet ‘evil empire’

    South Korea’s Government Explores Move From Windows To Linux Desktop | SlashdotThe reason for this is simple. It’s to reduce software licensing costs and the government’s reliance on Windows. As Choi Jang-hyuk, the head of the Ministry of Strategy and Finance, said, “We will resolve our dependency on a single company while reducing the budget by introducing an open-source operating system.” – back in the day South Korean online security depended on support for ActiveX, how far things have moved on

    Slick Inbox – interesting idea. BUT RSS, VIP section in mail.app are all competitors

    Thread by @thezedwards on speech recognition / natural language processing – interesting how it can be used (whether or not it is used is another matter) for marketing, surveillance etc

    How Your Laptop Ruined Your Life | The AtlanticEarlier this week, a woman managed to find a seat next to me on the train, took out her laptop, and started plugging away at a spreadsheet. The sight filled me with dread, as it does every time I spot a fellow commuter writing code or finessing a PowerPoint while I listen to podcasts. I suddenly became much more aware of the hard, thin edge of my own work computer, digging into my thigh through my tote bag. – Whatever happened to thinking time?

    Sony as Automaker | Akihabara News – it will be interesting to see Sony go against Tesla

    Trump’s immigration enforcement agents use cellphone location data to track individuals for detention – WSJ / Boing Boing – I’d be surprised if they weren’t doing this

    What Happens When a High-Tech Apparel Brand Shares the Same Name as the Company that Backed the Controversial Iowa Caucus App? — The Fashion LawNot nearly as under-the-radar as ACRONYM, the political organization, ACRONYM, the apparel company, is, nonetheless, situated more behind-the-scenes than the majority of its peers. As writer Adam Wray detailed in 2013, “You’d be forgiven for not knowing much about ACRONYM.” Despite having significant clout when it comes to technologically-advanced apparel and amassing a list of famous fans (think: Kanye West, John Mayer, Jason Statham, best-selling author William Gibson, and mixed martial arts champ Max Holloway, just to name a few), “the company never advertises and with no public relations strategy to speak of, its founders are tough to reach.”  Hugh and his co-founder slash business partner Michaela Sachenbacher “prefer to let their designs” – which are heavy on the GORE-TEX technology and utilitarian-focused hacks, and too expensive for most – “speak for themselves.” Yet, “whether you know it or not, [ACRONYM has] been pacing the vanguard of technically-focused fashion for nearly two decades.” – having worked in an office with the unfortunate name of ISIS House, an acronym that it shared with a terrorist organisation I can understand some of the pain for Errolson Hugh and company

    精進カップラーメン | zen-foods – vegan friendly instant noodles, I’d be surprised if these don’t start appearing in Whole Foods soon

    FBI Says China ‘Biggest Threat’ to US Law Enforcement as Arrests Skyrocket in 2020 | RFA‘We believe that no country poses a greater threat than Communist China’ – but what are they going to do about it?

    ‘A bit impersonal’: The rise of influencer marketing agencies rankles influencers – Digiday“When I reach out to brands directly, they tell me to apply for their programs through their affiliated network, which means I lose whatever personal connections I might’ve had and the ability to negotiate,” Groffman said. A company he had worked with for years recently referred him to its influencer network, he added. “Influencer marketing has finally matured as an industry,” explained Kristy Sammis, executive director of the Influencer Marketing Association, in an email. “Brands are now willing to allocate significant budget to strategic influencer programs. This means they need scale, benchmarks, and guarantees. That’s simply not possible with one-on-one influencer relationships.” Currently, influencers lack a standardized set of rates, yet a myriad factors can go into setting a price. That said, a $10 cost per thousand impressions is a baseline for influencers working on Instagram and Instagram Stories, according to Village Marketing founder Vickie Segar. She added that for every 100,000 followers, that rate grants an influencer $1,000 a post. Plus, companies and influencers might additionally negotiate usage rights and exclusivity, which could increase the fee. Terms vary by company, but payment can take from 30 days to 120 days – it’s probably because brands don’t want to have to filter out chancers and assholes themselves. Secondly, algorithms mean influencers are no longer an effective form of reach

    The Era of Antisocial Social Media | HBRsaying that after years spent constructing carefully curated online identities and accumulating heaps of online “friends,” they want to be themselves and make real friends based on shared interests. They’re also craving privacy, safety, and a respite from the throngs of people on social platforms — throngs that now usually include their parents. To reach these younger audiences on social, marketers are going to have to re-think their approach. The first step is to understand the distinct characteristics of these more closed, and often more private and interactive online spaces. Since I believe that naming a trend helps provide a framework for understanding it, I have dubbed these spaces “digital campfires.” – to misquote Satre Hell is other people. From a brand perspective digital campfires are more attractive than the digital dumpster fires that channels like Twitter and YouTube often descend into

    Barnes & Noble suspends reissues of classics with new images | AP News – criticised on social media as ‘literary’ black face

    Mayfair robbery: Three men hunted after man stabbed for £115,000 watch | UK News | Sky News – events like this will reduce the UK’s attractiveness for luxury sales

    Daring Fireball: My 2019 Apple Report Card – well worth reading, though I think Apple should have showed some backbone in Hong Kong – I have never been so disappointed in a brand

    A mercenary army of the poor? Technological change and the demographic composition of the post-9/11 U.S. military: Journal of Strategic Studies: Vol 0, No 0the U.S. military no longer primarily recruits individuals from the most disadvantaged socio-economic backgrounds. Technological, tactical, operational and doctrinal changes have led to a change in the demand for personnel. As a result, on different metrics such as family income and family wealth as well as cognitive abilities, military personnel are on average like the average American citizen or slightly better – there is also the aspect that military service runs in the family so previous generations may have been lifted into the middle class by the GI Bill

    When China’s Long Game Short Circuits | Echowallmany of the examples of long-term policymaking in China collapse under closer scrutiny, whether in the area of environmental protection, infrastructure or population policy. For example, China’s solar power growth has been driven by government subsidies, resulting in market distortion, huge debt and waste. In the construction of infrastructure, such as the high-speed rail system and local airports, there is lack of coordination and long-term planning – not terribly surprising

    My daughter’s TikTok triumph and the fleeting nature of internet fame | Financial Times – just wait until the advertising algorithm crushes reach again

    Inside Huawei’s first 5G phone: Teardown reveals rush to innovate – Nikkei Asian Review – interesting analysis of the design approach. The design is surprisingly messy. This implies a few things. Huawei had to rush as it was behind. The phone isn’t as ‘premium’ as Huawei would like to believe, its the smartphone equivalent of having Irish travellers tarmac your drive. Huawei is leaving money on the table by not optimising their designs.

    UK mobile operators warned to deliver on rural ‘not spots’ | Financial Times – I’d laugh if mobile operators just walked away from it all

    What the Hell Is China Doing on the Dark Side of the Moon? – projection of power and influence

  • Adapt & other things that caught my eye this week

    Adapt did a great guerrilla wrap for Metro newspapers during the December general election. In their own words:

    We designed an alternative newspaper cover wrap for the Metro. On it, we imagined a different approach to the December 2019 election – where climate change was the main focus. From front page to the sports section, we turned every tiny detail of the newspaper into a lighthearted commentary on climate change and the urgent need for a Green New Deal. Once printed the paper cover was applied to Metro newspapers and distributed across London by a large team of volunteers.

    I liked this Adapt project as it reminded me of people like Adbusters and the ethos behind much of the stuff on the Wooster Collective

    Metro Guerilla wrap
    Courtesy of Adapt
    Metro Guerilla wrap
    Courtesy of Adapt
    Metro Guerilla wrap
    Courtesy of Adapt

    Scotty Allen of Strange Parts went to a wholesale market in Shenzhen, China that sells everything you need for a high tech factory. This eco-system is why industrialisation isn’t going to return to the UK any time soon.

    Watch out for the vibrating pans in after 8:25 that tilt components up the right way. Such a simple design solution, each one is custom made for the part that they need to work with. Seeing it in action is almost like black magic.

    It’s interesting to look back through concept videos at what people thought the future might hold. This one was done in 2001 and captures the ennui of modern life. It was originally made for a Teletext conference… More on the web-of-no-web here.

    Brilliant bit of work on Cheetos based on the product flaw / design feature of flavouring that gets all over your fingers. Ride on 90s nostalgia with MC Hammer and you have a Super Bowl memorable experience.

    It is right up there with the Steven Siegel ad from 2004 by BBDO New York that had Mountain Dew as the hero product also featured other PepsiCo brands including Cheetos.

    LinkedIn Live - the mind boggles
    Screen shot from the Louis Vuitton LinkedIn live stream

    LinkedIn – Louis Vuitton menswear fall/winter 2020 lifestream – its odd to see a YouTube style lifestream on LinkedIn. Engagement seems to be relatively low given Louis Vuitton’s million-plus followers. And the user experience is really out of context on a business platform.