Looking back to when I started this blog, it would have been reasonable to expect an inevitable march of retailing from offline to online. Amazon was on a tear and search advertising volumes were increasing year on year. By the time I was at Yahoo! search advertising (focused on online retailing) counted for about half of all revenue for the company.
At that time Yahoo! had a Spotify-like subscription streaming music service that was viewed as a threat to Apple’s iTunes download only offering. When I worked there Yahoo Music was the number one online music site in terms of audience reach and total time spent by consumers on the site. Also display advertising was much bigger for brands than it is today and Yahoo! was guaranteed a good share of the online marketing spend from any movie launch at the time.
The reality of online retailing, was slower than our expectations. While COVID drove an increase in online retailing there has also been corresponding innovations in retailing as well.
Amongst the pioneers in this change have been luxury brands like Burberry and Nike, who brought digital into their stores to provide a superior customer experience.
Adidas brought manufacturing into its stores with its speedfactory experiment, allowing for fast time to market and customisation.
Supreme changed the cadence of retailing with the Thursday morning ‘drop’ which saw queues outside stores. Every Thursday became a launch day as far as their customers where concerned. The queue has moved from Apple’s annual cadence, to every week.
BBC Blogs – Technology & Creativity Blog – Shifting gear with the BBC World Service – interesting opportunities for developers, this mirrors the expansion of Chinese and Russian media internationally. The BBC World Service has also had its funding disrupted in a manner that make it more political. The long term impact of this bias is likely to damage the BBC World Service as a soft power tool
Apple manufacturer Foxconn just bought iPhone accessory maker Belkin – great move for Foxconn. Foxconn now gets a number of consumer brands including Linksys and can make better Apple accessories faster based on their knowledge of Apple production – if they can maintain secrecy
Louis Vuitton’s new men’s designer Virgil Abloh is known for streetwear, not high fashion — Quartzy – A new generation of consumers is emerging with different values and desires than previous buyers of high-end goods. Instead of spending their money on fancy suits, young shoppers are dropping hundreds of dollars on items like logo tees and sock sneakers. As clothes continue to move away from formality, brands from Berluti to Balenciaga are adjusting their wares accordingly – with younger Asian consumers as the growth market of the luxury sector the two worlds are merging. Its only been four decades in the making
What Siri creator Norman Winarsky thinks of Apple’s Siri now — Quartz – not terribly surprising. Norman Winarsky is now a partner at a number of Silicon Valley venture firms. Whilst he is better known in business space now as a lecturer on business, entrepreneur and VC, he is an academic at heart.
Norman Winarsky via the TechCrunch account on Flickr
Norman Winarsky studied and eventually ended up with a doctorate in mathematics. He started his private sector career at RCA Research (RCA’s answer to Xerox PARC or IBM Research), he had a career there for a number of decade as that moved through various owners. Eventually it became the east coast campus of SRI. Norman Winarsky went on to help found the SRI process for spinning off businesses and technology licensing. He was a co-founder of one of those businesses: Siri – that was bought by Apple. It will be interesting to see if Norman Winarsky has another high impact idea in him moving forwards. More related content here.
That’s the key finding from an analysis of regional and global agency deals by global marketing management consultancy Trinity P3 and Mark Ritson
Alibaba rival JD.com posts first annual profit as a public company | TechCrunch – The company’s fiscal profit was helped by a surprise $35 million profit in Q1 and a lucrative Q3 quarter in which it posted a RMB 1 billion ($151 million) profit thanks to its own efforts on Single’s Day, China’s online shopping bonanza. The company posted a RMB 909.2 million (US$139.7 million) loss for Q4, but that marked a 28 percent decrease year-on-year.
While Alibaba has a higher profile — with enormously profitable quarters — JD.com has quietly built out its e-commerce by expanding into financial services, offline retail and more
Consumer behaviour
This Chinese billionaire felt lost in US without WeChat, mobile payments | South China Morning Post – The chairman of Legend Holdings, the controlling shareholder of Lenovo, said China was now comparable to Japan and ahead of the US in terms of mobile internet technology, digital content and innovative business models.“If you haven’t stayed abroad for a long time, you might not understand [the difference],” said Liu, citing his recent experience in the US. His insights give credence to how Chinese technology companies have cultivated a hi-tech universe so large that it exists almost exclusively on its own – sustained by the country’s 1.4 billion people – but cut off from the rest of the world by Beijing’s Great Firewall, which blocks content not approved by the government. – the problem is that Chinese systems are ‘Galapagos’ technologies
BlackBerry suing Facebook for patent infringement | CNBC – “Blackberry’s suit sadly reflects the current state of its messaging business. Having abandoned its efforts to innovate, Blackberry is now looking to tax the innovation of others. We intend to fight,” Facebook general counsel Paul Grewal said – you see Facebook has sucked the blood out of other businesses for too long. I have little sympathy with them in this suit. It will be interesting to see how robust BlackBerry’s patents are and whether it would be cheaper for Facebook to pay them off or buy the business outright. The question is who is next after Facebook in Blackberry’s legal sights?
Luxury
Balenciaga is Putting its Money Where its Logo-Covered Hoodie Is for F/W 2018 | The Fashion Law – garments on the brand’s runway bore a phone number, +33156528799, which turns out to be Balenciaga’s “new hotline.” Call the number and you can answer a 20-question survey, inquiring about your age, primary language, height, and shoe size, as well as your favorite form of transportation, type of music, season, taste (your options are: Bitter, Salty, Sour, Sweet, or Umami), and so on.
A way for Balenciaga to better understand its customers? Maybe. Considering that the message is ends with the following note: “Thank you for taking the time to answer our questions. All data will be erased now,” I, for one, am guessing this is more interactive experience than fact gathering mission. If we have learned anything over the past several years, it is that “experiences” are everything to the modern-day consumer – I can imagine a choir of marketers howling in a symphony of pain about this
Meet the billionaire millennial pouring money into British fashion… and she’s only 27 | Telegraph Online – ‘My generation has completely different shopping habits,’ says Yu. ‘People born in the 1960s and ’70s buy into established brands such as Dior and Chanel. For them, it’s about showing status and where they fit into society. But my generation isn’t into logos – it’s not cool, it’s too obvious. [And] we prefer to shop online. We’ve become very interested and hungry for young, emerging designers.’
P&G’s Marc Pritchard calls for ‘fewer project managers’ at agencies as he vows to destroy ‘maze of complexity’ – “For media, data and analytics is enabling us to bring more media planning in-house, replacing multiple layers,” said Pritchard. “When it comes to buying, our purchasing people can negotiate with the best of them, so we’re doing more private marketplace deals in-house. And if entrepreneurs can buy digital media, why can’t the brand team on Tide, Dawn and Crest be entrepreneurs and do the same? They can, and they will.”
He explained that P&G wants and needs brilliant creatives, and will invest in such talent. But “creatives represent less than half of agency resources, because they’re surrounded by excess management, buildings and overhead.”
Media
Time for news to fight back | The Australian – Mark Ritson arguing that that agencies may be pushing clients into digital media because it can result in greater commissions for the agencies — in some cases almost 3 times greater than for traditional media (paywall)
Retailing
Smartphone users are spending more money each time they visit a website – Recode – The amount of money people spent per visit to online retailers has increased 27 percent since the beginning of 2015, according to new data from Adobe Analytics. Meanwhile, the length of smartphone website visits has actually declined 10 percent
Silicon Valley Is Over, Says Silicon Valley – The New York Times – In recent months, a growing number of tech leaders have been flirting with the idea of leaving Silicon Valley. Some cite the exorbitant cost of living in San Francisco and its suburbs, where even a million-dollar salary can feel middle class. Others complain about local criticism of the tech industry and a left-wing echo chamber that stifles opposing views. And yet others feel that better innovation is happening elsewhere – like Shenzhen? I think a lot of the problem with Silicon Valley is that it doesn’t build hardware any more. Bright people are mobile for the right pay, what you can’t easily do is the kind of commercialisation and manufacturing speed as a feedback loop like you see in Southern China
WSJ City | Five signals sent by China’s Anbang takeover – Reining in big spenders (spending capital abroad in an untargeted manner), reduction of systemic financial risk, concern over complex short-term high-yielding wealth products
Opinion | The Tyranny of Convenience – The New York Times – Americans say they prize competition, a proliferation of choices, the little guy. Yet our taste for convenience begets more convenience, through a combination of the economics of scale and the power of habit. The easier it is to use Amazon, the more powerful Amazon becomes — and thus the easier it becomes to use Amazon. Convenience and monopoly seem to be natural bedfellows. – great article by Tim Wu
Burson Cohn & Wolfe – SixtySecondView – like any other business merger the focus will keep the eye off the ball at a time when the PR industry is seeing exceptionally low growth rates. I have friends and former colleagues on both sides of this in both Asia and Europe; so I hope it works out well.
Smart homes and vegetable peelers — Benedict Evans – interesting starting point, but I think that there should be a second layer. Can the intelligence be local (like lighting sensors based on movement and presence in office buildings) or does it need cloud computing? Why can’t smart lightbulbs be at the edge rather than in the cloud. Why does a Nest thermostat need to be in the cloud?
Samsung says it’s going to stop pumping out features and start making devices good instead – BGR – “We developed mobile phones earlier than China, and we were obsessed with being the world’s first and industry’s first rather than thinking about how this innovation would be meaningful to consumers,” Koh said. “Being the first turns out to be meaningless today, and our strategy is to launch something that consumers believe meaningful and valuable at a right time.” – this reads like a slap in the face to Huawei’s approach on innovation and features
The Shallowness of Google Translate – The Atlantic – Google Translate really weak on language that uses metaphors or symbolic elements in their discussion. So examples that I am familiar with Google Translate failing on include both Cantonese and Mandarin. It’s Mandarin is slightly better, likely due to a wider body of material to work from.
Are you addicted to your smartphone? You may need professional help | SCMP – it is interesting that ‘internet addiction’ isn’t diagnosed as say obsessive compulsive behaviour or sociopathy but its own unique disorder. The likes of TV soap operas or music offered similar escapes – the amount I spent on vinyl was definitely the wrong side of sanity (paywall)
Watchdog voices fears of privatisation risk to ethical standards – FT.com – Commissioners tended to assume that providers would conform to ethical standards so they were not explicitly incorporated into either the selection of providers or contracts. If monitoring occurred at all, it was focused on performance and financial measures rather than ethics, the committee said. (Paywall) – because that’s going to work well…
In a Mobile-First World, Shorter Video Ads Drive Results | Facebook Business – Average watch time for both the 6-second and 30-second video ads was the same, but ad recall was significantly higher for the 6-second ads. The difference in ad recall underlines the importance of keeping video ads short and communicating key messages in the first few seconds. – And here is the flaw in the argument
Daring Fireball: Only Apple – interesting article. I think that Apple’s decision to not try and build a curates egg helps, also iOS and OSX are being evolved rather than being completely shaken up at the moment. Lastly Apple has to worry about a smaller amount of variance in hardware than other software teams
Web of no web
BBC News – Tomorrow’s Cities – thought that this was interesting primer for smart cities, internet of things, programmable web, machine-to-machine
One of the key issues of concern for the financial services sector has been the lack progress in passporting. This is where the EU says UK regulations and processes are equivalent to theirs and consequently allow market access. More related content here.
China Smartphone Market 2017: Top 10 Best-selling Models – Counterpoint Research – interesting read, basically Apple is the premium smartphone seller. Huawei’s Honor brand makes the top ten along with Xiaomi. It also explains why Huawei wants to get its main brand into the US as that is the main way it can increase the razor thin profit margins of its smartphone business. The real winner is BBK-related brands OPPO and vivo
ongoing by Tim Bray · Google Memory Loss – the whole Web is crushingly expensive, and getting more so every day. Things like 10+-year-old music reviews that are never updated, no longer accept comments, are lightly if at all linked-to outside their own site, and rarely if ever visited… well, let’s face it, Google’s not going to be selling many ads next to search results that turn them up. So from a business point of view, it’s hard to make a case for Google indexing everything, no matter how old and how obscure – the problem for Google would only be if you started to see search promiscuity
Knock and the door shall be opened unto you | FT Alphaville – in China, the data linked to technology companies is already central to the notion of credit provision. It also plays into the country’s planned social credit system. This has come alongside the rapid development of online payments, especially on WePay, part of WeChat. It would be no exaggeration to say that this is perhaps the most important technological development of the present moment, although, in part because of the impenetrability of the Chinese internet, it currently resonates less than it should
